Most price movements are highly predictable. Margin in other words just $ allows you to control a unit currency position. But this is not the only advantage you get when trading forex compared to other ways of investment and speculation as stocks. Futures traders who are asked for margin requirements generally equal to of the total contract value will immediately appreciate that the forex market provides much greater leverage and stock traders who must post at least margin may think they are dreaming. Since currency trading always involves buying one currency and selling another it all means that you have equal potential for profits in both a rising orfalling market. Thus when you buy aparticular currency you are actually simultaneously selling theother currency in that particular pair.
