Trader forex

Trader forex

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United States, Regulation T permits an initial maximum leverage of 2:1, but many brokers will permit 4:1 leverage as long as the leverage is reduced to 2:1 or less by the end of the trading day. Day trading was once an activity that was exclusive to financial firms and professional speculators. Many day traders are bank or investment firm employees working as specialists in equity investment and fund management. Some day traders use an intra-day technique known as scalping that usually has the trader holding a position for a few minutes or even seconds. Because of the nature of financial leverage and the rapid returns that are possible, day trading results can range from extremely profitable to extremely unprofitable, and high-risk profile traders can generate either huge percentage returns or huge percentage losses. In addition, brokers usually allow bigger margin for day traders.