Wednesday, February 22, 2012

Is Electronic Currency Trading a scam? - Finance Learning Center

There was an WSJ article about a person using currency trading as a scam, using the new investors money to pay the existing investors.

The bottom line is, there is nothing more risky in finance than in currency trading, because of the huge leverage currency trading allows you. A family member lost 40K in a short period of time. A normal stock margin allows you to borrow 1 dollar on 1 dollar of your own funds. The currency trading allows you to put down 5 cents on 1 dollar trade. A swing in the currency price will wipe out your equity quickly. Stay away from it. zero prospects of getting return.

Source: http://www.financelearning.org/forex/is-electronic-currency-trading-a-scam/

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