Tuesday, July 20, 2010

Margin Trading


For trading the main currencies, Saxo Bank requires a 1% margin deposit. This means that in order to trade one million dollars, you need to place just USD 10,000 by way of security. As you can see, this calls for a very disciplined approach to trading as both profit opportunities and potential risks are very large indeed.


Of course many commercial organisations participate purely due to the currency exposures created by their import and export activities, Nevertheless, any investor with the necessary knowledge of the market's functions can benefit from the advantages stated above.

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