Sir, i want to start trading in forex market? So, how much return can i gain from forex market?
Hi kannamthanam I did trade in the NSE and BSE for some time during last year. But as I had written earlier I am a part time trader and have a full time job from 9-7. So Indian stock market opens and closes while I am in office and I cannot trade from my desk I needed to find something that suits my lifestyle. The NYSE opens at around 7:30 pm IST but the forex market is open 24X5 as you may know. Somewhere someone always wants the USD and Yen etc. So it kinda resonated with my needs and after a bit of research I jumped in.
Now to operate in any stock exchange abroad you need quite a big initial amount. Very few brokers would open an account with less than 10000USD. But as market makers operate in the forex market we can get high leverage hence low initial amount. For me forex just fulfilled all my needs to trade.
If you are skeptical that forex is an OTC market hence it is unregulated you can trade the Globex futures which have the same spot currency pair value as underlying asset. For more see http://www.cme.com/
but as it is futures exchange the account opening rules are different. And they also apply commission fee per transaction but the bid/ask spread that you can get there will be one of the lowest in the market. There are also ECNs which operate as clearing houses for big banks like JPmorgan, BOA, Deutsche and AIG etc. I have posted about them in another thread. They simply pass your order into the market and charge you a fee. In this case you will get the exact environment as banks are getting.
Aah and don't worry about the slowness of forex market. There was a day Nifty lost ~250 pts and it was havoc. Check the movement of GBP/USD for january and Feb till date. 300-400 point movement is just normal. And it is not one of the fastest moving pair
Regards,
AdaG.
Now to operate in any stock exchange abroad you need quite a big initial amount. Very few brokers would open an account with less than 10000USD. But as market makers operate in the forex market we can get high leverage hence low initial amount. For me forex just fulfilled all my needs to trade.
If you are skeptical that forex is an OTC market hence it is unregulated you can trade the Globex futures which have the same spot currency pair value as underlying asset. For more see http://www.cme.com/
but as it is futures exchange the account opening rules are different. And they also apply commission fee per transaction but the bid/ask spread that you can get there will be one of the lowest in the market. There are also ECNs which operate as clearing houses for big banks like JPmorgan, BOA, Deutsche and AIG etc. I have posted about them in another thread. They simply pass your order into the market and charge you a fee. In this case you will get the exact environment as banks are getting.
Aah and don't worry about the slowness of forex market. There was a day Nifty lost ~250 pts and it was havoc. Check the movement of GBP/USD for january and Feb till date. 300-400 point movement is just normal. And it is not one of the fastest moving pair
Regards,
AdaG.