3. Trading equipment and basic setup to begin trading
Choosing a Margin broker
Most margin brokers now display a
dealable rate on the screen making
it quick and easy to trade. They all
offer analysis of your profit and
loss, your margin deposit, reporting
on the trades you executed, the
orders you placed on the system.
Some offer additional features like
charting and analysis.
At Trader House we don’t force you
to trade with any particular broker,
but we do highlight those that we
have tested over a period of 2-3
years since we began as the best.
When choosing your broker, you
should evaluate:
-
The
regulatory status of the
broker
-
The margin you will have to
deposit – a low figure might
be appealing, but will soon
be burnt up on leveraged
trading
-
The speed of update of the
pricing software
-
The consistency of pricing
spreads, and the overall
spread you receive
-
The extra features they
provide like analysis and
news
-
The user friendliness of the
software
4. Margin Broking Systems
Leverage and margin
Foreign exchange trading is normally
undertaken on the basis of
margin
trading. A relatively small deposit
is required to control much larger
positions in the market. For trading
the main currencies, a margin broker
might require a 2 % margin deposit.
This means that in order to trade
one million dollars, you need to
place just USD 25,000 by way of
security. As a result, you will have
obtained a gearing or
leverage
of up to fifty times.
Most traders start with a smaller
margin of say USD 5,000 enabling
them to trade in 2 lots or 200,000
of base currency in any pairing.
ISO
codes