Tuesday, June 21, 2011

Investopedia: The U.S. Dollar - What Every FX Trader Needs To Know


Foreign exchange, or forex, trading is an increasingly popular option for speculators. Ads boast of "commission-free" trading, 24-hour market access and huge potential gains, and it is easy to set up simulated trading accounts to allow people to practice their trading techniques. (For more, see Forex Trading: A Beginner's Guide.)


With that easy access comes risk. It is true that forex trading is a huge market, but it's also true that every single wannabe forex trader is going up against thousands of professionals working for major banks and funds. The foreign exchange market is a 24-hour market and there is no centralized exchange – trades take place between individual banks, brokers, fund managers and other market participants – but 10 firms dominate nearly 75% of the volume.


To read the full column, click the link:
http://www.investopedia.com/articles/forex/11/us-dollar-forex-traders-should-know.asp

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