What is FOREX?
Forex is an acronym for FOReign EXchange and is the worldwide cash inter-bank or inter-dealer market that uses a floating exchange rate system. Most people have never heard of FOREX. Yet, it is the world's largest financial market with an estimated daily average of more than $1.5 TRILLION. Some say that it would take the entire New York Stock Market about 3-4 months of daily trading to equal one day of trading in Forex!
Who is responsible for the size of this market?
The major participants in the market are the international banks, multi-national corporations, and large brokerage houses that trade in huge volumes of currencies. They are involved in the market as a natural and important part of daily business operations, such as:
- Importers who buy foreign currency to pay for the goods they import;
- Exporters who are paid in foreign currency for the goods they export;
- Portfolio managers who buy and sell overseas assets and need or receive foreign currency as part of the transaction;
- Banks and other financial institutions.
How does FOREX trading occur?
Unlike stock markets and futures markets, the Forex market does not occur in a central location or at specific times. Trading occurs between the major international banks and brokers over the Internet, by telephone and through computer terminals at hundreds of locations worldwide. Because of this, trading continues 24 hours per day during the business trading week. The dealing desk is open whilst all FOREX trading institutions are active, this is effectively the business trading week, being Sunday 10pm through Friday 22pm - GMT.
How «fair» is FOREX trading?
The FOREX market is so large and is composed of so many participants that not even a large government can completely control the direction of the market. Experts have labeled FOREX as the «Fairest Market on Earth».
Why is FOREX trading so popular?
The growth in traders of the FOREX market has been explosive over the last years. The commercial application of the Internet has provided traders with the same access to the market as the banks. Individuals can now trade on even more favourable terms due to the lower cost structures offered by Internet trading companies like Samant Inc. FOREX trading is attractive because it offers traders personal and financial freedom. A FOREX trader can virtually live anywhere in the world as long as they are within reach of the Internet. Most importantly, FOREX trading has become so popular because FOREX traders can potentially earn very high incomes.
Why trade with Samant Inc.?
Samant can provide a FOREX dealing service to a wide variety of market participants, institutions as well as individuals. Samant offers the best service in the industry to all traders, large or small. Learn FX is on the cutting edge of currency trading because you can be anywhere in the world - at home, on a plane, at a beach house - and still have full access to the market. As long as you have a laptop (and access to Internet) you can trade from any place in the world.
How much will it cost me to get into trading FOREX?
You can commence trading with as little as US$300 and this is your trading money that is held in a segregated client trust account. Samant Inc. derives its income from commission on trades. It is in our interest to ensure that traders are successful and profitable. Traders will commence FOREX trading with differing skill levels. We provide the training products and trading tools to allow you to successfully trade the FOREX market.
How much money can I make?
The amount of money a trader can make obviously varies between individuals and is dependent upon the level of risk taken and the amount risked. No guarantees can be made as to the profitability of a trader. However, the high degree of leverage available to FOREX traders makes it possible for a trader to earn extremely high returns in a very short period with a small margin amount.
How much risk is involved?
Leveraging provides the opportunity for considerable profits, however there is a high level of risk associated with margined trading. An adverse movement in a currency could see the margin eroded to zero, at which time the dealer will immediately close the trader's position to prevent any further loss. It is imperative that traders understand the principles of stop losses and employ an effective trading system to maximise their success in trading. We request that you read the Disclosure posted on this web-site and suggest that before deciding to participate in FOREX Trading you should consider your investment objectives, level of experience and risk appetite. Most importantly, do not risk money you cannot afford to lose.
What is Demo trading?
Demo trading is simulated trading. The demo Trading Platform gives you the opportunity to «Trial» trading. You may use this to decide if Forex trading is for you, or to trial trading systems before going live. The demo trading site provides all real data and free charting facilities. You will need to register for «Demo Trading» on this site and we will forward you a User ID and Password. We recommend all potential traders should trial the demo trading to familiarise yourself with the Trading Platform and how it works.
What Factors Affect The Success Of A Trader?
Training. A trader must be sure to dedicate sufficient time to learn the skills and disciplines required to become a successful FOREX trader. Whilst the trading principles that you may have learnt from equities and other trading markets will stand you in good stead, you will need to know how to apply these principles within the FOREX market. To assist you in determining the level of training that you may require our traders can access our on-line FOREX Courses. These are held regularly. Subsequently they can choose to enrol in our Training Program or for the more advanced trader, the Advanced Forex Training Program. In conjunction with these training progams, we provide a FREE Demo Trial trading account to allow the skills learnt to be applied with no financial risk.
Trading System. We recommend that all traders of FOREX undertake a training program that will provide the fundamentals to developing an effective trading system. An adequate trading system will incorporate good technical skills including correct stop loss placements, and should be followed to eliminate trading on emotion.
Data Feed and Charting Software. Real Time Data Feed and Charting facilities are essential to clearly analyse the market and follow trading strategies. We can provide free charting and data feed services direct from the dealing desk.
Electronic Order Entry Trading Facility. We can provide one of the most effective electronic trading facility available today. The facility provides a live, low cost dealing facility, importantly, without excessive delays or slippage, together with free simulated trading accounts to trial trading strategies.