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Stock investors sometimes find this difficult to
believe, but it's true! The sheer size of the forex market (46 times
greater than all futures markets combined) and its greater price
stability allow forex traders to get a much higher degree of financial
leverage than is typical with stocks or even with futures contracts.
Trading forex with RefcoFX gives you up to 200 times the leverage
of trading stocks (if you trade stocks on margin, then trading forex
with RefcoFX gives you up to 100 times the financial leverage).
Example:
In stocks, for every $1,000 cash you invest, you usually control
$1,000 worth of stocks. Your financial leverage is 1 to 1.
If you spend $1,000 investing in 100 shares of a $10 stock,
and the stock increases in value 10%, from $10 to $11 per
share, then you end up making exactly $100 — less the
commission you have to pay on the trade (which can further
reduce your potential profits).
But with forex, if you invest, say, $1,000
margin on a euro trade, and the value of the euro increases
10%, from $1.00 to $1.10, you end up making $10,000 —
or 100 times more! Plus, when you close out the trade, you
don't have to pay any commissions whatsoever! |
Of course, the leverage works both ways and you
can magnify your losses as well as your gains – EXCEPT that
with RefcoFX, unlike in futures or stocks, you get GUARANTEED stop-loss
orders. That means if you use stop-loss orders, your risk is
strictly limited to an amount you choose!
That is what makes trading forex so attractive. In the past, direct
access to the interbank forex market was limited to institutional
investors such as big financial institutions and investment funds.
It was only in recent years that smaller individual investors have
been able to trade forex quickly and easily through online trading
platforms such as RefcoFX.
When you combine the high degree of financial leverage, guaranteed
stops and strictly limited risk with the many other advantages of
forex — including 24-hour-a-day trading and FREE trading tools
— then you can see why trading with RefcoFX is an attractive
investment alternative.
It's easy to get started. You can begin trading immediately with
our risk-free demo account and begin
competing right away for $5,000 in monthly cash prizes (Competition
details). It won't cost you a cent to enter the demo account
competition. All you have to do is register, download
our FREE demo account trading platform, and start entering trades
with $50,000 in virtual money to start.
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