People think that Forex is like a bank, they invest money and this is multiplied miraculously, it is not, Forex as something serious, time and head needed, you can decide how long you want format, to be a professional trader on Forex there is plenty of information but everyone says his, me for example started, but had a problem, did not know that broker choose, will be one of trust? Broker because you have to give your money, capital, and did not know which to choose, did not know the requirements.
In this article I will explain how to choose the broker that suits more your style of trading. This argument is required to get a broker who is able to meet our needs als trading style, let’s start…
What is a broker?
A broker is an intermediary, it is a body that can enter the Forex market, so we can not transfer Free on forex, we need an intermediary.
What does the broker?
Presents our requests to buy and sell, if we buy a lot of euro – dollar or sell the broker will allow us to these actions in Forex, they ask for collateral margin of our transactions (capital) is a broker’s account as collateral operations of our requests, the trader (you) requests an order to broker a batch of 100,000 euro-dollar and Broker Margin takes into account what we have deposited 10,000 euros for example, that point if the broker can send our request to purchase a batch of euro-dollar turn that circuit send the updated quotes Broker who in turn sent to us, that the order to purchase a batch of euro-dollar I have been satisfied.
In the words seems a very long process, but they are very fast. Another example Trader sends an order to sell a batch of 100,000 euro-dollar then say which particular? there is no direct connection with the broker means that the money is not deposited into, but there is a link or written agreement, in which case if the broker goes bankrupt we do not lose our capital, recover our money.
For example now bought a batch of 100,000 euro-dollar will request collateral margin in this case 1,000 euro would be 1% if you want to settle a batch of euro dollar, is 1% margin, this means that there is a leverage, if you have 1,000 in your account and can settle 100,000 euro dollar means that the broker is giving you a leverage of 1: 100 by multiplying by 100 and 1000 is precisely what you can settle up with only have 1000 euros or dollars on your own you can settle 100,000 euro – dollar this is an advantage that gives the broker.