What is Forex?
The foreign exchange market is the “place” where currencies are traded. Currency important to most people around the world, whether they realize it or not, because the currency must be exchanged for foreign trade and business. If you live in the United States and want to buy cheese from France, either you or the company that you buy the cheese has to pay for the French cheese in euros (EUR). This means that the US importer will have to exchange an equivalent amount of US dollars (USD) Euro.
The same goes for travel. French tourists in Egypt can not pay in euros to see the pyramids, because it is not a locally accepted currency. Thus, the tourist has to exchange euros for the local currency, in this case, the Egyptian pound, the current exchange rate.
How much money you need to start trading in the Forex market?
How much money do you need to day trade Forex? If you want to day trade the FX, I recommend opening an account with at least $ 4,000, mostly $ 9000 if you want a decent stream of income. Taking into account of $ 4,000, and without the risk of no more than 1.1% of your account on each trade ($ 50 or less), you can make $ 80 + a day.
Legitimate trade in the Forex market?
Thus, forex is legal in the United States and many other countries around the world. Unlike the securities and futures markets, the forex market is not controlled by any central governing bodies, nety clearing houses and there is no arbitration. all members of the trade with one another based on credit agreements.
Is it safe to trade on Forex?
Forex is not, strictly speaking, the “investment” in the sense that investing in bonds or stocks are. if you Trade the FX , you put your money at risk in the investment strategy. However, the risk can be controlled by judicious shopping strategy.
Is forex trading income is taxed?
Section 988 operations, the default method of taxation for currency traders , consider the profit or loss from FX transaction as ordinary income or ordinary loss. If you have forex income, they are taxed as ordinary income, as long as ever with the tax bracket you fall under.
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