Do you need a lot of money to trade currencies?

No, the minimum deposit required is US$ 10,000 for account opening procedure. Costumers are allowed to execute margin trades at up to 1:100 leverage. This means that investors can execute trades up to $ 100,000 with an initial margin requirement of only $1000. This type of leverage allows investors to maximize their profit potential.

What affects the price of currencies?

Currency prices (exchange rates) are affected by a variety of economic and political conditions, most importantly interest rates, inflation and political stability. Moreover, government sometimes participate in the Forex market to influence the value of their currencies, either by flooding the market with their domestic currency in an attempt to lower the price, or conversely buying on order to raise the price. This known as Central Bank intervention. Any of these factors, as well as large market orders, can cause high volatility in currency prices. However, the size and volume of the Forex market makes it impossible for any one entity to "drive" the market for any length of time.

How do I manage my risk when I trade currencies?

The most common risk management tools in Forex trading are the limit order and the stop loss order. A limit order places restriction on the maximum price to be paid or the minimum price to be received. A stop loss order ensures a particular position is automatically liquidated at predetermined price in order to limit potential losses should the market move against an investor's position. The liquidity of the Forex market ensures that limit order and stop loss order can be easily executed.

Is Leverage Foreign Exchange Investment (LFEI) a form of Gambling?

All form of investments carry risks that could be measured and could be minimize with the knowledge of Fundamental & Technical Analysis. Whereas in gambling you can only rely on your luck.

Does Leverage Foreign Exchange Investment (LFEI) require large funds?

In LFEI transaction, investor only made use of approximately 1% of the actual value of the transaction.

Could the Investor lose all of his wealth in LFEI investment?

In LFEI, the risk to the investor is only limited by the margin that was turned over prior to trading.

What difficulties does the Investor face in his or her Trading?

Every trader faced the same problem. It is not the Trading Strategy or the Trading Technique; it is the loss of control over his or her EMOTIONS during their trade i.e. sudden deviation from their Trading Strategy when faced with difficult trades.

What kind of trading strategy should I use?

Currency traders make decisions using both technical factors and economic fundamentals. Technical traders use charts, trend lines, support and resistance levels, and numerous patterns and mathematical analysis to identify trading opportunities, whereas fundamentalists predict price movement by interpreting a wide variety of economic information, including news, government-issued indicators and reports; and even rumor. The most dramatic price movements however, occur when unexpected events happen. The event can range from a Central Banks raising domestic interest rates to the outcome of a political election or even an act of war.

How long are positions maintained?

As a general rule, a position is kept open until one of the following occurs:
1) Realized of sufficient profits from a position;
2) When specified stop-loss is triggered;
3) Another position that has better potential appears and you need these funds.