Forex…trying to make a dollar out of 15 pence!
This is an old Wired article…and the Forex market is nothing new. But I wanted to bring this up, as it’s a really good read. Quick run-down, the Forex market is the foreign currency exchange market that is getting ever more popular with individual investors. Which is basically what this article focuses on…the new (young) traders in the market. What used to be the game of heavy banks and institutions is now looking a little bit like ‘day trading’ did in 1998-2000. And it’s a wild market to trade in. Here’s a quick quote from the article… ’ With a broadband connection, a few thousand in cash and the emotional stamina to withstand losing said cash, anyone can trade foreign exchange. It needn’t even interfere with your day job. Unlike the stock market, forex runs 24 hours a day.’ The idea of a 24 hour market is very appealing. Another wild thing is the margins you can trade on…100x your available balance. Meaning $5k lets you leverage $500k in buying power. Yikes, be careful. Check this article if you get a chance.