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One recommended way to get around this is to trade a mini-Forex account and
to use a Forex trading software package. This
option allows you to trade in $10,000 lots, and with the high margin
allowances in the Forex, you could make trades with as little as $100. As you gain exposure to the Forex trading business, you will notice the
frequent use of the word "pip." The Forex market trades currency prices in
pips. A pip means "percentage in point." In the Forex world this pertains to
the fourth decimal point, which is equal to 1/100th of 1%.
One cautionary note about small trade sizes however, is that you will need
Currencies fluctuate for a variety of reasons, and predicting these
fluctuations can be accomplished with technical analysis, and observation of
current events, politics, and the economy of the country whose currency you
are interested in.
Many traders choose to focus their efforts on one foreign currency and look
for buy
and sell signals by
trading the dips and swells of that currency. |
