How does FOREX positions trading work and what is the profitability? -

what exactly is a position? a lot? what is the advantage in investing now that the economy is in shambles and the dollar has depreciated? I don t know a lick of this stuff so please be specific, thank you! You take a quot;Forex positionquot; when you enter the Forex market buying or selling a specific currency pair at a specified price. The size of the position is determined in quot;lotsquot; or units. For instance, lets imagine that you have a Forex account that you funded with U.S. Dollars. The first trade you decide to take is to buy 100,000 units of EUR/USD. At the moment you buy those 100,000 Euros you simultaneously sell the difference in the exchange rate in Dollars (136,000 approximately). If the price of the EUR/USD at the moment you bought was 1.3600 you now hold 1.0 lot (commonly referred to as 1 standard lot or 100,000 units) of EUR/USD long. If the value of the EUR/USD climbed to 1.3700 and you exited (or converted your euros back to dollars) you would have made $1000. I am sure, you now have many more questions. I believe it would be much easier if you took one of the free Forex courses online. The easiest is www.babypips.com/school but you can google to find others if you prefer. As for the advantage of Forex now over other asset classes. Well, the biggest advantage is that there is no such thing as a bullish or bearish Forex market. You can make money Forex, no matter the market condition if you know what moves the currency market, take a disciplined approach to trading the market, and have a solid trade/cash management strategy. As for the claims by many that Forex is a quot;scam,quot; let me say this. Do people lose money in Forex? Sure. Are there companies out there willing and able to steal money from unsuspecting Forex newbies? Absolutely. But if you are careful, smart and educate yourself about Forex you will be fine. The potential in the Forex market is unlimited - but the dangers are also great. Take your time. Don t rush into it. Find a few mentors and you can make it. It seems you have yet to get a good answer, so here it goes. Position trading is simply where you take and keep a quot;positionquot; in the market. It is essentially the opposite of day trading in that day traders never keep a position overnight. So technically if you open a position and keep it past quot;closingquot; you are in a position trade. Now this is a little tricky to define in the FX as the markets are open 24 hours so the reference then becomes if you keep a position open past closing in the market time zone you are trading (ie. london). Position trading has its advantages in that you do not have to be glued to the computer screen like you do in active day trading. That is the upside, the downside is that you need to have a fairly well funded account as you will have to sustain larger market swings than a day trader who is only looking to quot;scalpquot; pips as he/she trades throughout the day. In other words day traders are not ususally in the market long enough to sustain huge market moves. Position traders are usually trend trader looking at long term trends or they are fundamental traders who enter a position based off of fundamentals yet dont know exactly quot;whenquot; the markets are due to move in their favor. This means that they will just enter a position and wait either for a price objective, a percentage gain, or if they are a commercial trader, until their hedge is closed. Hope that helps Happy Trading - Jay If you are looking for real-life examples of position trades and other types of forex trades I recommend you go to http://piphut.com I think it is better not to get involved with stock market trading activities nowadays. It is better to keep your savings in the bank. I think almost all financial institutions are scams in Hong Kong and the US. You can view the following website about Forex scam in HK. http://mojostock.com/blog/forex-trading-... http://search.yahoo.com/search;_ylt=A0oG... This followings will provide you a basic knowledge about stock markets. Don t try to get rich quick scheme. You will become a loser eventually, my friend. http://en.wikipedia.org/wiki/Stock_marke...