Written by Emerging Market Capital FX (EMCFX.com)

This will depend on the risk tolerance, long-term goals, realistic expectations and margin.

In the currency market there is more liquidity for large gains and losses. Why? The currency market trades $3.2 trillion in volume each day vs. the U.S. Dow Jones Industrial, which would take them 60 days to match the volume. In the currency market we are riding the coat tails of the larger participants i.e. central banks, large...

Written by Emerging Market Capital FX (EMCFX.com)

Forex news can be about the following: Economic indicators, monetary policy decisions, comments from financial leaders, elections, interventions, referendums, war etc...all these can cause an effect resulting in either a strong or weak dollar.

Economic indicators measure the strength or weakness of the economy. Prior to a news release the actual numbers will be compared with the previous numbers to see if there was an...

Written by Emerging Market Capital FX (EMCFX.com)

Risk is the tolerance level an investor can handle or afford to lose. All investments have some risk including stocks, 401k, mutual funds, bonds, futures, options, derivatives, currency, forex, etc… For example, a 401k plan has lost nearly 40% in the past year. How will this affect the investor? Could he have done something to control or manage the loss in his 401k? The majority of investors rely on brokers’ or bankers’ knowledge...

Written by Emerging Market Capital FX (EMCFX.com)

What are margin requirements? A margin is a small deposit, which allows you to leverage a large contract (unit or lot) size and all this will depend on the clearinghouse. In the forex market, each clearinghouse has one or multiple margin requirements. For example, 1% (100:1 ratio) or 2% (100:1 ratio) margin based on a $100,000 balance would either be $1,000 margin or $2,000 margin. This means 1 unit is $1,000 margin or 5 units is $5,000...

Written by Emerging Market Capital FX (EMCFX.com)

There are several investment vehicles but one of the world largest participants is the U.S. bond market where over $800 billion on average is traded daily and in the worldwide market overall is $80 trillion is traded. When the U.S. session opens early in the morning eastern standard time and the actual data is released from the economic indicators, you will see immediately the volatility in the volume of buying and selling pressures...