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For example, in a 100:1 leverage, if you put US $100,000 into a currency and the currency’s price moves 1$ against you, the value of the capital will have decreased to US $99,000, which means a loss of US $1,000 a 100% loss. On the other hand, in the equity market, there is no leverage being used most of the time, so if there is a 1% loss in stock’s value on a US $1,000 investment, it will only give you a US $10 loss. To go deeper regarding the difference between the Forex Market and Equity Market, let’s look at the number of traded instruments. The Forex market has only a few in comparison to the Equity Market. There are only seven different currency pairs and the four major includes: EUR/USD, USD/JPY, GBP/USD, and USD/CHF. Also, there are three commodity pairs USD/CAD, AUD/USD, and NZD/USD. All other pairs are just different combinations of the same currencies – called cross currencies. It makes it easier to choose and monitor the instruments in the Forex market compared to trading in equity that you have to carefully pick thousands of stocks of the best value. In trading equity, it is difficult to open and close positions because of the shrinking volumes and activities of the stock. Furthermore, one could make a profit in a declining equity market only while one could make profit both in the rising and declining Forex market. It is a simultaneous buying and selling and even short selling.

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Depending on the number of days you hold your position and the currency pair that you are trading, your account will be credited or debited accordingly, which can in turn increase you cost of transaction or reduce it.

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In addition, sellers who consider owner financing need to understand the risk that the buyer might not pay you in whole or in part, or might have financial distress situation arise down the road, where after a year or two the payment stream to you is disrupted by their financial distress.

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Aspirants or seasoned traders need to create special tricks that are useful in achieving success in trading immediately.

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It is important to get an adequate level of skills through the study of technical and fundamental analysis.