Forex Trading

 

An example of the foreign exchange Trader x has an account with $ 50,000 U.S.. Buy 500'000 EURUSD at 1.1500 in the market and request a stop loss at 1.1460. At this point the maximum possible loss is $ 2,000 and have use of the reserve is 10%, which is much above the minimum. During the day, fluctuating foreign exchange market and initially moves down to 1.1480. At this point the trader x has suffered a loss unconsciously by U.S. $ 1000 and decreased use of the reserve to 9.60% and this decline reflects the impact of movement on the ability of the reserve it has. But later in the second price rise to 1.1550 and trader x decides to reap the profits. May sell his price of 1.1550, achieving a profit by $ 2500 U.S. This represents a revenue of 5% of the value of the balance of his account. Note that trader x has not only risked two thousand dollars and achieved revenues of U.S. $ 2500 and this ratio is equal to 1.25 between risk and reward. Every trader should be directed to the high proportion between risk and reward. The auditor should be noted that the example above is a random case scenario is not intended in any way imply that the profit potential is greater than the possibility of loss in trading foreign currencies. Learn forex trading respecting our account free demo forex trading