Pitfalls of the #Currency #Casino

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BARONS | SATURDAY, APRIL 9, 2011

Pitfalls of the Currency Casino

By ANDREW BARY | MORE ARTICLES BY AUTHOR


Want to open a trading account for $500 or less? Fund your initial trade with a credit card? And then use leverage as high as 50-to-1 to vie against experienced traders at giant corporations and huge banks? No problem. Just enter the dicey and lightly regulated world of retail foreign-exchange trading. But don't be surprised if you depart from it with a lighter wallet.


Stuart Goldenberg for Barron's
Clients can open accounts with credit cards. Then, they can add leverage by trading currencies on minimal margin.


Guppies in a world dominated by whales, the folks who trade through these companies do an estimated $125 billion a day in daily trading, up from $10 billion a decade ago. Not a small number, but one that pales when contrasted with the $4 trillion in volume that courses through the global forex market each day.

AS CASINOS HAVE SHOWN, it pays to be the house.

MORE- http://www.zenzoneforum.com/threads/18623-Pitfalls-of-the-Currency-Casino
 
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