One of the questions I’ve gotten lately is “Can I get a Forex Loan for Online Trading?” While that’s a roundabout way of asking about Forex margin requirements, the answer is a resounding YES! The Forex Market offers the most generous margin loans out of any other market, and if used properly, the ability to profit off of trading Forex online is tremendous!
Since the Forex Trading market is largely unregulated, the ability for brokerage firms to provide margin is almost limitless. forex trading Most online trading houses set a cap at roughly 200 to 1, which when you realize that the United States stock market margin limit is only 2 to 1, is really quite tremendous! These generous margin loans make it possible to grow an online Forex trading account quite quickly, but on the converse side, the risk of losing money is also elevated.
Online Forex trading with such extreme margin loans requires a bit more than a modicum of caution, it requires a definite trading plan. This is the point where many new traders get stuck. They look at the margin loan potential of their new account, mesmerized by the opportunity to make huge trading profits, and then get blown out in their first trade. This is because they forget to treat their online trading like a business, and instead turn it into a gambling hall. If the thrill of maybe, possibly making some big money is what you are really looking for, than go to the casino. However, if you’re looking to really turn that loan into big profits trading Forex online, then just like any other business, you better have a plan!