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USD/JPY in @110.88 and took profit @110.50 $687 Green today

August 16, 2017

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USD/JPY in @110.88 and took profit @110.50 $687 Green today

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Differences between Forex Trading and Stocks Trading

Margin Trading: Stocks vs Forex The word “margin” means something entirely different when dealing with the Forex then it does when dealing with stocks. When dealing with stocks a trader can borrow up to 50% of a stocks value. This can be a pretty costly move as the investor pays an interest to the brokerage firm on the amount of the money that he borrowed. This isn’t the case with Forex Trading. For example, at $100 a share, 100 shares of Yahoo are valued ad $10,000 ($100 x 100 shares) To trade this stock on margin, the trader is required to pay 50% of the amount and the remaining $5,000 is borrowed and interest has to be paid on that amount. Margin interests differ from broker to broker, but typically you can expect to pay an interest of 1-3% or more. Now, when dealing with the Forex, margin is the minimum required balance to open a trade. When you open a Forex Trading account, the money you deposit acts as collateral for your trades. This deposit, called margin, is typically...

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USD/JPY in @110.88 and took profit @110.50 $687 Green today

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