If you are concerned about trading foreign currencies without the leverage, we can tell you that some great traders in the market do not use leverage. The following example will illustrate how this can still work. For instance, you buy $2000 with the 1600 EUR. So, in the worst case, if the price of USD drops by 50%, you are not bad. In this case, you are still left with 800 EUR. On the other hand, if you use the leverage ratio 100:1, bear in mind that you will lose all of the money. Even if you earn something without using the leverage it cannot be anything significant. Only wise decisions can lead you to serious profit.
One unique aspect of this international market is that there is no central marketplace for foreign exchange. Rather, currency trading is conducted electronically over-the-counter (OTC), which means that all transactions occur via computer networks between traders around the world, rather than on one centralized exchange. The market is open 24 hours a day, five and a half days a week, and currencies are traded worldwide in the major financial centers of London, New York, Tokyo, Zurich, Frankfurt, Hong Kong, Singapore, Paris and Sydney—across almost every time zone. This means that when the trading day in the U.S. ends, the forex market begins anew in Tokyo and Hong Kong. As such, the forex market can be extremely active any time of the day, with price quotes changing constantly.
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