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Home » MBA Interview Questions » MBA - Foreign Trade Interview Questions » What Is Currency Margin Trading?

What Is Currency Margin Trading?

Expert Suggestions on Preparation for Computer Based CAT-09



What Is Currency Margin Trading?

Margin Trading

  • Step 1:
    When you trade on margin, you "borrow" money to trade. In essence, trading on margin is gambling. The investor may win big or lose big.

Currency Trading

  • Step 1:
    Currency trading is the buying and selling of different currencies from around the world. All currencies have a value related to each other and the fluctuation of these values enables people to trade world currencies for profit.

Cost of Margin Trading

  • Step 1:
    Margin trading is not without cost. Trading on margin is borrowing and typically there are fees and/or interest on the money borrowed.

Currency Markets

  • Step 1:
    Global currency has become a popular form of trading. The fluctuations in monetary values offer trading opportunities and are directly related to the global marketplace.

Purpose

  • Step 1:
    The goal of currency margin trading is to make money by trading global currencies with less cash out of pocket. A person is able to trade more with less of his own money.

Currency Margin Trading

  • Step 1:
    The trading of global currencies has become an enormous market and a way to make a great deal of money. Currency margin trading allows a trader to trade global currencies with borrowed money, giving the trader a greater opportunity to make more money.



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