Thursday, March 26, 2015

Long-term macroeconomic trading

Long-term trading in currencies is generally reserved for
hedge funds and other institutional types with deep pockets.
Long-term trading in currencies can involve holding positions
for weeks, months, and potentially years at a time. Holding
positions for that long necessarily involves being exposed to
significant short-term volatility that can quickly overwhelm
margin trading accounts.
With proper risk management, individual margin traders
can seek to capture longer-term trends. The key is to hold
a small enough position relative to your margin balance
that you can withstand volatility of as much as 5 percent
or more

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