What is Forex?
Forex trading dominates the world’s financial markets. The currency market is highly volatile and dynamic, achieving daily volumes of trillions of dollars. The majority of trading is carried out by big institutional investors like national banks and major funds, but individual private investors are accounting for a larger share of the global forex market every year. The Beneffx.com platform connects you directly to the markets and gives you leveraged exposure to all of the world’s leading currencies.
An Example of a Trade
You buy USD 250 with Euros. After a week, you exchange the dollars back to euros, making a profit of $75.
How is this possible?
When you first bought the $250 a week ago, the USD market price was 0.9 EUR. Now, the USD market price is 1.2 EUR. This 0.3 price movement earned you $75.
You profited by following the basic market principle of buying the dollars at a low rate and selling them back at a higher rate. If you had leveraged your initial investment your profits would have increased in direct proportion to the leverage that you used.
$250 x 200 leverage = $50,000.
$50,000 x 0.3 price movement = $15,000
If you correctly predicted the market performance of the asset, you may make substantial profits, particularly if your trade is leveraged. If your investment does not succeed, you will only lose the funds allocated to that particular trade. You will never be subjected to any further debts or liabilities.
Why do Online Trades?
Beneffx.com offers modern traders a low-cost investing environment, where fixed spreads have replaced old fashioned fees, commissions and hidden charges. When you trade online, you can follow every stage of your investment and see all your potential profits, losses and expenses at a single glance. Beneffx.com operates a slimmed down online brokerage with few of the costs that were associated with the old style investment houses and stockbrokers. These savings are passed on to our traders.
Traders at Beneffx.com have instant access to up to x200 leverage. The only condition is that you maintain a sufficient margin reserve in your trading account to cover your leveraged trades. Leverage allows you to multiply the volume of any trade and potentially increase your profits by the same proportion.
When you trade at Beneffx.com you can open leveraged trades on nearly 1,000 financial assets such as forex, stocks, commodities and indices.
Advantages of Online Trading
Unlike traditional trading, you don’t need to actually own any asset. As a result, this eliminates the need for any paperwork and/or contractual arrangements with any third parties.
Performing online trading with Beneffx.com is as easy as 1-2-3: Just register with your details, fund your secure trading account and start investing instantly.
- Leverage enables you to gain a large exposure to any financial market with only a small amount of your capital. By doing so, you are able to increase your overall profits only because they are based on the total investment amount of the position.
- Spreading your investments across different asset classes creates a well-diversified portfolio, lowers the volatility of the market with direct relation to your trades and reduces your overall risk exposure.
- Risk management
- Exercising good money management is always possible thanks to the stop loss/take profit parameters. By automatically closing any open position in case the price either drops or rises beyond a predetermined point, you can continuously maintain your risk levels conservative.
- Profit opportunities
- It is possible to profit from online trading in both rising and falling markets. You can either open a SELL position and profit as the asset price drops or open a BUY position and profit as the asset price rises.
Who Can do Online Trading?
Online trading is already a highly popular form of investment with millions of traders worldwide. Almost anybody can trade online if they are willing to apply the basic principles of risk management. The Beneffx.com online Education Center contains all the learning tools and educational resources that you need to begin online trading.
Many of Beneffx.com top investors signed up as absolute beginners with no experience of the financial markets. They used the Education Center and free Demo Account to master the basics of online trading. Our traders range from novice investors who trade part time, to expert investors who manage complex personal portfolios on a full time basis. The Beneffx.com platform gives you the freedom to set your own financial goals and manage your own investments.