0
One function of foreign banks, which is especially important to those who trade in foreign currency,is margin trade. Forex margin accounts allow traders to control a large amount of currency with only a small deposit. What is margin? In forex trading margin accounts are expressed as a percentage. For example, a margin account of 1% would give you 100:1 leverage. So with $100 you could control $10,000 of currency. If the $10,000 of currency that you buy increases in value, you get all of the profits - but if that currency decreases in value, you are liable for all of the cost. Many people are wowed by the profit potential, and don't stop to think about what would happen if the trade went wrong.
Trading on margin increases your profit potential, but also increases your risk of losses. Fortunately, most online FX brokers will end a trade if it falls below the amount deposited, minimising your losses - but you'll still have lost the money that you had deposited, you just won't end up owing a lot more.
For more information on foreign banks and foreign exchange, see the websites below.
Add your answer:
Earn +20 pts
What are the functions of private banks?
The functions of private banks is different in different localities. Some are the same as national banks and others deal with stocks and bonds and foreign exchange.
What types of banks are allowed to operate foreign currency accounts?
Foreign Banks
What are the functions of cooperative banks?
More or less all functions done by other sector banks though the co.op.banks have some restrictions from rbi and registars of concern state it could not conduct some special functions like bank guarantee to govt.mnc.,foreign business..letter of credit facility etc.
Can foreign money be taken to us banks to trade for us dollars?
Yes - Banks usually have a foreign exchange counter.
Do all US banks now charge a fee for providing one with foreign currency?
Not all Banks charge for foreign currency, but most of the larger national banks do charge.
What are the functions of private banks?
The functions of private banks is different in different localities. Some are the same as national banks and others deal with stocks and bonds and foreign exchange.
What types of banks are allowed to operate foreign currency accounts?
Foreign Banks
What are the functions of cooperative banks?
More or less all functions done by other sector banks though the co.op.banks have some restrictions from rbi and registars of concern state it could not conduct some special functions like bank guarantee to govt.mnc.,foreign business..letter of credit facility etc.
What are the Function of foreign bank?
roles of foreign banks
What has the author Joe Zhang written?
Joe Zhang has written: 'Challenges and opportunities for foreign banks in China' -- subject(s): Banks and banking, Foreign, Foreign Banks and banking, Law and legislation, State supervision
Can foreign money be taken to us banks to trade for us dollars?
Yes - Banks usually have a foreign exchange counter.
How many foreign sector banks?
a
What are the functions of Thrift Banks?
Thrift banks originate home loans.
Do all US banks now charge a fee for providing one with foreign currency?
Not all Banks charge for foreign currency, but most of the larger national banks do charge.
What is specialized banking?
Specialized banks are foreign exchange banks, industrial banks, development banks, export-import banks catering to specific needs of these unique activities. These banks provide financial aid to indutries, heavy turnkey projects and foreign trade.
What are the developments in INDIAN banks because of existence of foreign banks?
Banks in India these days have started offering competitive services like internet banking, mobile banking, telephone banking etc because of the foreign banks. The foreign banks offer these kind of services abroad and can easily offer them in India and to compete with them Indian banks offer these facilities as well.
What is an IRS w9 form?
foreign banks
