How does FX trading differ from stocks on Wall Street?
A. FX trades are opened then closed typically within days, sometimes within hours or minutes. A margin of only 1% is required to initiate a Forex trade with our managed accounts as opposed to 50% margin required for trading stocks. $10,000 would enable you to buy or sell $1 million worth of any currency (including US dollar). When you sell a foreign currency against the dollar, you are buying the dollar equivalently in hopes that the dollar would rise in value and you can then cash in and close your position for a handsome profit.
