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The following article was published in our article directory on May 20, 2013.
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Forex Bonuses: What Are They?

Article Category: Finances

Author Name: James Smith

For forex traders, particularly beginners, it is important to understand what forex bonuses are and what these can do for their trading activities. This article will attempt to explain the concept of foreign exchange trading bonus by using clear examples.

The Forex Trading Venture

Foreign Exchange trading is all about currencies. A forex trade is done on a currency pair that consists of two different currencies. Trading can be done regardless of the time of day, and anywhere the trader may be, unlike stock trading which is done only at fixed hours, and at a centralized trading hub.

In forex trading, there are a lot of ways to earn a trading bonus. To define it simply, a bonus is the extra cash that one gains from foreign exchange trading. Traders make moves with a keen eye on risk and profit; and the same mutual gain principle that worked even on the most primitive barter system still applies to forex trading as no business exists without profit as the primary motive.

Forex Promotions

Some forex companies offer forex bonuses when you sign up and open an account with them. This signing bonus can be considered as an instant profit for the trader. With as little as $25, a beginner can already enjoy a trading bonus. This is on top of the gains one can make from actual trading; and as previously mentioned, there are other ways to earn a bonus.

Margins

Leveraged trading allows a trader to make a gain even with only a relatively small amount of investment. Leverage is a type of loan that can be extended by a forex broker. For example, if trades are leveraged at 1:100, the broker puts up $99 for every dollar invested by the trader. The $1 represents the trader's minimum cash investment and is called.

This leveraged trading on margins greatly enhances the trader's chances for forex trading bonuses simply because in order to completely wipeout the trader, the market must move 100 points against him. The low level of leverage provides the trader with a lot more chances to succeed. Of course, this does not guarantee that one can always make a profit from a leveraged trade and not lose at all.

The foreign exchange market, after all, is known for its volatile price swings that one cannot accurately predict a winning or losing position. Traders are aware that currency prices can go up or down any moment. Good market analysis coupled with a sound trading strategy, however, can mitigate the risks.

A trader who invests in a big number of lots is given a trading bonus, and this allows the investor to trade even more. In terms of amount, the bonus can be quite significant simply because the bonus depends on the amount being traded. Small time or amateur traders therefore, cannot enjoy the same amount of bonus because they usually dabble in comparatively smaller investments.

Keywords: forex bonuses, binary options bonuses, forex training, binary options training, forex affiliate programs, binary options affiliate programs

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