Curent Traders

Many of the same strategies that you use to trade futures, equities, and all other markets can be applied to the FX market, but there are differences. The FX Power Course teaches you these differences including the characteristics of the major currencies, what technical tools and money management strategies work best in the FX market, and other market insight to help ensure a successful transition to trading FX.

Why Equities and Futures Traders Make Great FX Traders

The foreign exchange market offers several key advantages over the equities market including 24-hour market liquidity, equal ability to profit in up and down markets, low transaction costs, and strong trending characteristics.

24-Hour Market Liquidity

The daily volume of the FX market exceeds $1.4 trillion per day, roughly 30 times the volume of all U.S stock markets. The consistent liquidity of this market provides currency traders with the ability to enter and exit trades regardless of the size of the transaction or time of day.

Ability to Profit in Up or Down Markets

Unlike the equity market, there is no restriction on short selling. Profit potential exists in the currency market regardless of whether a trader is long or short, or which way the market is moving. Since currency trading always involves buying one currency and selling another, there is no structural bias to the market. This means a trader has an equal potential to profit in a rising or falling market.

Low Transaction Costs

The over-the counter structure of the currency market eliminates exchange and clearing fees which, in turn, lowers your transaction costs. Costs are further reduced by the efficiencies created by a purely electronic market place that allows clients to deal directly with the market maker, eliminating both ticket costs and middlemen.

Trending Market

Currencies rarely spend much time in tight trading ranges and have a tendency to develop strong trends. Over 80% of volume is speculative in nature; as a result, the market frequently overshoots and then corrects itself. The FX Power Course teaches you to identify new trends and breakouts, which provide multiple opportunities to enter and exit positions.

Secured Loan and Its Repayment

A secured loan is a loan that is given against a property. Secured loans are the most popular loans among lenders. A secured loan reduces the lender’s risk since it is backed by a security. If the borrower defaults on repayment of loan, the lender will get a legal right to repossess the property. He may then sell off the property to recover his money. The amount of loan that can be obtained depends on the equity in your property. The rate of interest depends on your ability to repay the loan and your financial position.

Borrowers with a clean credit score are charged a low rate of interest. Lenders charge high interest rates on bad credit secured loans. A credit check is done before offering a secured loan. All your previous credit transactions will be checked, such as credit card bills payments and loan repayments. Any default or late payment will go against you when it comes to determining the rate of interest.

There is a heavy penalty on making a default on the repayment of a secured loan. As mentioned earlier, you may lose your property if you fail to repay the loan. Default is not always intentional. Sometimes, unavoidable circumstances such as death, accident, sickness or involuntary job loss may lead to non-repayment of a loan. To avoid this, you must take out a Payment Protection Insurance which covers your repayments in the event of death, accident, sickness or involuntary job loss.

There is one big drawback of Payment Protection Insurance. The amount of Payment Protection Insurance is added to the original loan amount and then the interest is charged on the entire loan amount. This doubles the actual cost of the loan. There are alternatives available to Payment Protection Insurance that include income protection policy and short term income protection. In case of income protection policy, you are paid a percentage of your income if you lose your job due to accident or sickness. In case of short term income protection, you will be paid for a year in case of accident, sickness or job loss.