can someone say something abt forex trading. is it just like trading stock.i have decided to do that also.somewhat complicative.
well1stly its illegal in SL..... If you are residing outside it can be done, but remember the trading you do on internet is speculative nature and its called OTC (over the counter). so basically its like gambling. Also there is commodity trading ex gold,silver,natural gas,oil,sugar etc.....all these are speculative as you would be buying and selling OTC. since you will not get GOLD or any other commodity physically they are called OTC.
There are brokers who facilitate you to trade using their platforms......most favourite is metatrader4 now metatrader 5 is also available.Tradestation/webtrader to name few. there are different types of brokers...
Market Makers/- They trade against you......
ECN - Good reliable they will not take the opposite trade of yours.
Some brokers allow trading stocks as well...but as i said all in the form of OTC.
Usually you will have to deposit in dollars...... and the trading will be immediate ..also some brokers give 100% bonus on teh 1st deposit....
Also PIP rebates (diff between the spread known as PIP eg if EUR/USD BUY 1.3010 SELL 1.3012 = 2pips) are immediately credited back to your account upon trade closing.....
Forex trading brokers gives you 100%,200% 300%.....500% margin trading.....this will kill you .....and you will loose quickly if you are on the wrong side of the bet.
But my advise is dont trade Forex Trading.....invest that money in CSE.FT needs lots of skill...FT is mostly news driven which means you need to be aware of economic factors and their impact on the currencies.
Knowledge is important....there is more to forex trading such as automated trading using algorithmic patterns, but its too much to explain all this here.
As final thought please i would advise you dont trade you will loose eventually as it is known 95% are looses and only the 5% make the CUT.
Please note we are not encouraging this form of trading for srilankan citizens,as per CBSL its illegal...i mean ILLEGAL.
And I think this is the view of SLEF as well.So we do not want the forum to get into problems with the authorities....So Please refrain from this type of trading since its not for srilankans.
As per CBSL only few banks are authorized to carry forex trading for its clients...ithink HSBC is one i presume.
some one could confirm to it.but you will require a large amount of $ in your account.And the risk is huge.if you are willing take.
So stay away.....