Quantcast
Channel: Org ArticleOrg Article - Tag Archive for "Cheap Air Jordan 3"
Viewing all articles
Browse latest Browse all 3

Retro Jordans 11 Forex Trading – Understanding Commissions

$
0
0

Forex Trading – Understanding Commissions, Spreads and Trading Costs – free article courtesy of ArticleCity.comThe forex market is quickly becoming one of the most popular markets for trading.
Not only are the experienced traders looking to this market to maximize their trading returns, but many new, individual investors are now able to trade the Forex market – just as they do stocks and futures.
More and more individuals are seeing Forex not only as a new way to diversify their portfolio, but are also finding that it is becoming the most profitable component of their investments.
And that’s because of the many advantages Forex offers over other markets like stocks or commodities. Here’s what you will typically see advertized about Forex:
- Unparallelled liquidity. It is the largest financial market in the world by far. Almost $2 trillion being traded daily!
- Excellent leverage potential. Individual investors have access to leverage of 100:1 and even 200:1
- No Commissions (more on this later on)
- Low trading costs.
And yes, the Forex market really does offer all these advantages.
But the last two points above talk about costs ordans Shoes 7, and that’s what we’d like to focus on in this article.
Like any trading, there are costs involved, and, while these may be much lower than they used to be, it is important to understand what those are.
Let’s start by looking at stock trading, something that most of us investors are pretty familiar with.
When trading stocks, most investors will have a trading account with a broker somewhere and will have investment funds deposited in that account.
The broker will then execute the trades on behalf of the account holder, and of course, in return for providing that service, the broker will want to be compensated.
With stocks, typically Cheap Air Jordan 3, the broker will earn a commission for executing the trade. They will charge either a fixed dollar amount per trade, or a dollar amount per share, or (most commonly) a scaled commission based on how big your trade is.
And, they will charge it on both sides of the transaction Retro Jordans 11. That is to say, when you buy the stock you get charged commission, AND then when you sell that same stock you get charged another commission.
With Forex trading, the brokers constantly advertise “no commission”. And, of course that’s true – except for a few brokers, who do charge a commission similar to stocks.
But also, of course, the brokers aren’t performing their trading services for free. They too make money.
The way they do that is by charging the investor a “spread”. Simply put, the spread is the difference between the bid price and the ask price for the currency being traded.
The broker will add this spread onto the price of the trade and keep it as their fee for trading.
So, while it isn’t a commission per se, it behaves in practically the same way. It is just a little more hidden.
The good news though is that typically this spread is only charged on one side of the transaction. In other words, you don’t pay the spread when you buy AND then again when you sell. It is usually only charged on the “buy” side of the trades Air Jordan 11 Retro if you have time to unfasten the seatbelt and take a stroll inside.


Viewing all articles
Browse latest Browse all 3

Latest Images

Trending Articles





Latest Images