Retail may find it difficult or impossible to maintain required capital levels in the event of losses. Third, exposure limits are higher for retail forex traders than their institutional counterparts, even though regulatory requirements call for lower marks on margin positions. There are still more experienced retail forex traders over time that consistently pay off their exposure limit each month, unlike most momentum trading strategies.

What is OTC Trading? OTC trading refers to the practice of buying and selling securities over the counter, or "over the counter", which is a term used for transactions carried out outside of an organized stock market.

OTC trading is common in countries with weak or no formal markets because it gives investors access to stocks and assets not available on major exchanges. OTC trading is different from most other types of trading because it does not involve a registered broker-dealer. OTC traders are typically privately owned businesses that do business directly with clients. Broker-dealers usually act as middlemen between buyers and sellers of securities and receive a commission for their services. Because OTC trades are not subject to regulation, they can be more volatile than traditional securities transactions.

What is the World of Forex Trading? As the global economy keeps booming, so does the demand for foreign currency. Forex trading is a new way for investors to make money from the fluctuations in currency prices. What is Forex Trading? Forex trading is the purchase and sale of currencies with the hope of making a profit. Currencies are often traded on margin, which means that you could lose all your investment if the currency price falls significantly.

Why Trade Forex? Broadly speaking, retail forex trading is the buying and selling of currencies, commodities and other assets on a margin basis. This means that you can use up to 10 percent of your assets in the form of cash or precious metals to make each trade. Margin trading gives retail investors an opportunity to gain quick profits through price appreciation and minimal risk.

You will need to do the necessary research to see if a broker has checked all the requirements in the checklist. Choose a broker who is regulated by CMA so you can be sure that you can take action against the broker if something goes wrong. Many consider Forex trading as one of the fastest ways to double your money in a matter of minutes. Large crowds of people are attracted to it mainly because of the chance to get high pay-out.

Whenever someone offers an opportunity to make money, we immediately jump into it to make a quick buck. The brokers bank on this and offer dubious schemes to investors to double their money. Scams take place because of the lack of awareness. Investors are not aware as to how much profit can be made or how much investment it takes to double your money.

You need to understand what the market is, how it functions and learn how to read the market conditions. You need to be patient and you need to do your research before investing any money, even as little as Ksh.

Start by reading about the financial markets, risks, broker and what functions they offer. Talk to licensed investment advisors, and understand if this is an investment you want to make. Before trading with any broker, check if the broker is regulated, currently there are only four non-dealing forex brokers in Kenya licensed by CMA. Choose any one of them. Read their policies and do demo trades before investing real money. Log In. World Cup News News World Africa Corridors of Power Infographics Podcasts Big Read Fact Checker News Brief Star Farmer Twitter Space News Opinion Opinion Leader Star Blogs Columnists Cartoon Sports Sports Football World Cup Athletics Rugby Tennis Golf Boxing Basketball Business Business Kenya Africa Markets Commentary Living Spaces Counties Counties Nairobi North Eastern Coast Central Nyanza Rift Valley Western Eastern Siasa Sasa Sasa Word Is Lifestyle Technology Entertainment Society Fashion Food Travel Books Classifieds Today's E-Paper More More Health WomenWork Coronavirus Star Live InPictures Partner Sites Classic East FM KISS Radio Jambo Mpasho.

Register Login. Advertise with us Call: Email: [email protected]. Connect With Us. What are the dangers of forex trading for retail investors? In Summary. We've all heard stories of a person who perhaps came from a lower-class background, who began trading and was able to achieve success, earning millions in the process. Often these stories are heartwarming and inspirational, and teach us that all you really need to succeed is hard work, determination, and perseverance.

The types of stories will also teach us that we have to be extremely focused on our goals, to learn as much as possible every day, and that in the end, all the hard work will eventually pay off.

Real-life stories like this are, of course, extremely rare. There is also another type of story. The story of a professional trader who made millions trading for a few days, then lost everything because they were convinced they had found the ''Holy Grail'', perhaps through some specific Forex strategy — when in fact, they just had beginner's luck. Unfortunately, we cannot expect the stars to always align in our favour.

It's important to understand that random events, like 'luck' are unreliable. Without proper trading principals, trading failure is easy. Looking for a place to start? Learn to trade step-by-step with our educational course Forex , featuring key insights from professional industry experts. Suppose that you owned a company, what you would do with your own company? When you decide to start a company, you do not just invest in the first idea you hear about, right?

No, a sensible investor shops around first, and considers various options before committing to anything. Once you're running your business, you probably won't just go with the flow of things either. To make your firm operate effectively, you need to plan, set targets, check progress regularly, and set budgets.

The same principles apply to trading. As with fulfilling your life goals, in meeting your Forex goals, you need to really apply yourself, with a great deal of effort, focus, and determination. As Vince Lombardi once said, "the only place success comes before work is in the dictionary". When you Google something like "Forex monthly return", you may stumble into some outlandish account statements, or claims of people that are supposedly making millions per hour.

Don't forget that with every story of extremely successful and rich traders, there is usually a catch. You might hear a story about a Wall Street trader making 10 million USD a year, and it may even be true. But, what the story may not mention is that the traders manages billions of USD. Those 10 million USD are less than one percent of the total account that the trader manages.

Compare that to a 1, USD account, it then amounts to a return of just 10 USD a year! Before you attempt any form of trading, it is recommended that you do so first within a risk-free trading environment, via a Forex Demo account.

This will allow you to try out different strategies, techniques, and timeframes, without putting your capital at risk.

Forex Trading Options is a common and powerful investment tool, but it doesn't happen for free. Pro traders use special tools to do the work for them but have you ever wondered what these tools are?

This article breaks down what retail Forex trading software is and which tools are most commonly used by traders today. What is the Retail Banking? Retail banking is the process of providing financial services to customers through traditional retail channels, such as banks and credit unions. Retail forex trading, or FX trading using Forex platforms offered by retail banks and brokerages, is a growing area of the FX market.

Retail forex traders typically have lower margin requirements, shorter trade times and smaller account minimums than their institutional counterparts. There are several reasons why retail forex traders are popular. First, institutional investors often do not trade currencies directly; instead, they rely on foreign exchange brokers to execute their orders. As a result, retail investors often have better access to price movements and can take advantage of short-term opportunities that institutional investors may miss.

Second, retail forex traders typically do not have a large staff dedicated to trading currency pairs, which lowers the barrier to entry for new traders. Finally, retail banks and brokerages typically offer lower spreads compared to their institutional counterparts. There are several drawbacks to retail forex trading, though.

First, retail traders typically have less experience and knowledge than institutional traders when it comes to FX trading. This can lead to missed opportunities due to inexperience or incorrect valuation of assets. Second, margin requirements are usually higher for retail forex traders than institutional traders. Active traders MUST open margin positions and must have a minimum amount available to cover losses.

Retail may find it difficult or impossible to maintain required capital levels in the event of losses. Third, exposure limits are higher for retail forex traders than their institutional counterparts, even though regulatory requirements call for lower marks on margin positions. There are still more experienced retail forex traders over time that consistently pay off their exposure limit each month, unlike most momentum trading strategies.

What is OTC Trading? OTC trading refers to the practice of buying and selling securities over the counter, or "over the counter", which is a term used for transactions carried out outside of an organized stock market. OTC trading is common in countries with weak or no formal markets because it gives investors access to stocks and assets not available on major exchanges. OTC trading is different from most other types of trading because it does not involve a registered broker-dealer.

OTC traders are typically privately owned businesses that do business directly with clients. Broker-dealers usually act as middlemen between buyers and sellers of securities and receive a commission for their services.

Because OTC trades are not subject to regulation, they can be more volatile than traditional securities transactions. What is the World of Forex Trading? As the global economy keeps booming, so does the demand for foreign currency. Forex trading is a new way for investors to make money from the fluctuations in currency prices.

What is Forex Trading? Forex trading is the purchase and sale of currencies with the hope of making a profit. Currencies are often traded on margin, which means that you could lose all your investment if the currency price falls significantly. Why Trade Forex?

Broadly speaking, retail forex trading is the buying and selling of currencies, commodities and other assets on a margin basis. This means that you can use up to 10 percent of your assets in the form of cash or precious metals to make each trade.

Margin trading gives retail investors an opportunity to gain quick profits through price appreciation and minimal risk. The appeal of forex brokerage firms lies in their ability to provide liquidity in the market by offering short-dated futures and options contracts on a wide range of commodities, currencies and stocks. This allows you to buy and sell assets quickly and at relatively low costs compared to other investments.

In addition, you can also make a living trading forex if you have the right strategy and tools. Before investing any money, be sure to consult with a qualified financial advisor. Overall retail forex trading is a great opportunity for those looking for quick profits without too much risk.

Make sure you take the time to research the benefits of trading forex first. Pros and Cons of a Forex Trading Career. A forex trading career can be very lucrative, depending on your skills and timing. However, there are a few key things that you should know before jumping in:. Pros of a Forex Trading Career. This means that you can get started trading quickly and easily.

If you have the ability to analyze trends and identify buying and selling opportunities, then you can make some serious money in this market.

Cons of a Forex Trading Career. If you don't have enough money to start off with, this can be a problem. However, there are proven ways to make small investments that could generate huge profits over time.

Home What is Retail Forex Trading? by Forex Hub - September 08, What is Retail Forex Trading? Facebook Twitter. Post a Comment. Previous Post Next Post. Contact Form.

Your email. Before going live, a forex trader should hone his skills using a demo account. Forex is traded primarily via three venues: spot markets, forwards markets, and futures markets. Suppose that you owned a company, what you would do with your own company? Learn about forex: While it is not complicated, forex trading is a project of its own and requires specialized knowledge. Scams take place because of the lack of awareness.

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