0 Apr Credit Cards - Ok, What's The Catch?

How can credit card firm offer zero APR credit cards and still make money? Well, now that interest rates have gone up they don’t so much anymore. But zero APR can cards are still be establish if you look, and the Internet is probably the best source. So what’s the catch? There are several:

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- Most zero APR credit cards offer zero APR for a limited time, normally no more than a year

Carefully understand the fine print to look out exactly how much interest you’ll be paying later. Few people try to transfer their entire credit card balance to a new zero APR card every year in order to extend their “limited time offer” indefinitely, but credit card companies are taking wise to this maneuver. However, getting a zero APR credit card can be a smart move as long if you read the contract and follow the rules.

- There is usually an annual fee.

$20 is no problem, but bewares triple-digit fees just to get zero APR for 12 months.

- Zero APR card issuers make money from suckers.

So don’t be one. Late fees are elevated, so pay on time. How much of an interest rate is zero APR plus a late fee of $25? You can do the math yourself. The card issuer might also jack up the rate for late payers (they call it a “default interest rate”). And a default interest rate may apply not only to existing balances but future charges as well.

Zero APR credit cards can be the best value if there is a reasonable interest rate after the limited offer period ends and as if you pay all your card bills as they come appropriate. If you do that, then your low interest rate will in effect be paid for by the suckers who snatch up these cards and then don’t pay on time.

0% Credit Cards: Are They Worth It?

Credit card jumping has become a common tradition. The terms confer to the habit of moving debt balances from card to card to take advantage of affirmative rates. But just how valuable is credit card jumping for consumers?

UK consumers have staggering levels of debt. Consumer borrowing has grown by more than 50% in five years. It's no marvel that people are looking for new ways to lose the debt burden. Credit card jumping offers one possible solution.

Money Saving Device

People who are loading a large amount of debt can save hundreds of pounds in interest easily by taking advantage of the latest credit card balance moving deals. Most of these offer a 0% interest rate for a fixed period, such as three, six, nine or even 12 months.

As well as moving balances from other credit cards to a 0% credit card, purchasers are sometimes able to transfer balances from store cards and even outstanding loan amounts.  It is right checking to see if these transactions also interest from the 0% balance transfer rate.

Transferring a balance to a 0% credit card means that any payments made are paying off the principal instead the interest. These lessen the amount owed, which is great news for those using this as a debt management method. Plenty of card issuers do charge a balance transfer fee to curb the practice of credit card jumping, so it is valued looking around for the best deal.

Getting The Best From Credit Card Jumping

To get the best from 0% credit cards, many brilliant consumers move from card to card when the affirmative rate period expires. This entail some organization, but credit card jumping can mean that debt balances proceed to go down as consumers move money (or rather, debt) from card to card. Those who don't transfer their debt at the right time often find they are paying a much higher interest rate – and the debt is not being clarify. This method works best when consumers pay on time. Late payment can result in fees that increase consumers' level of debt.

Consumers who are intake many credit cards to control their debt should regard in creating standing orders to handle payments automatically. It is also valuable using a spreadsheet or calendar program to keep track of when it is time to move to the next credit card.

Other Incentives

Credit card jumping can be effective methods of reducing debt, whether consumers do not add any new debt. There are also other motivation for using 0% cards, such as charitable contributions, rewards points, air miles, travel insurance and much more. It is worth shopping around to get a reward as well as the interest-saving rate.

0% Balance Transfer Credit Cards Will Not Last

Have you ever been persuaded to a credit card because it pledge you an outstanding interest rate that seems just too good to be true? Most of us have a few stages jumped for one of these alluring offers. There are a growing number of credit card providers out there that will propose you 0% deals on either balance transfers or purchases, and once again they just seem too good to resist.

Particularly if you have a large remaining credit card balance that you are currently paying a lot of interest on, this proposal will be very tempting. In fact, many 0% balance move offers will save you hundreds of pounds on interest that you would unless you have had to pay on your credit card balance. But no matter how alluring such offers may appear at the time, you can only ever take on another credit card if you have taken the time to review your finances and are contented that it is the right financial move for you at this time.

To look at a usual example, suppose you have one thousand pounds outstanding on a credit card that charges 10% APR. This way that over the course of a year, this balance will cost you 100 pounds in interest charges. Now assume you find a credit card that offers you 0% on balance move for six months. Well it is pretty clear that 0% is better than 10 and if you were to take up this offer, assuming there are no balance transfer fees, then how cost will you have saved over the six month interest free period? The answer is 50 pounds. Nevertheless, what will the interest rate revert to once the interest free period has come to an end? This is anything you should be thinking about before you opt for the credit card, and not when the interest free period is about to expire and everything is more essential. Imagine, for the sake of our example that the interest rate reverts to a rate of 25%. This process that over the next six months you will pay £125 in interest.

While this is a very easy example, it explains an important point when it comes to 0% balance transfers. In the example above if the customer had stayed with his 10% card, he would have paid £100 in interest over a 12 month period. In the same period, by opting for a 0% balance transfer for six months that then reverted to 25%, he ended up paying £125.

The point to keep in mind is that just because a credit card offers you 0% does not signify it is the best deal out there. Look at the long term rates that the card will offer you, and compare these to the rates you are already taking from your credit card. If your being rate is better than the rates that you will get from the new card once the introductory offer ends, then maybe you should remain loyal to the card you have.

So if this is going on you will not be spending on the new credit card, but you will be safe in the knowledge that you are saving the interest payments on the old debt.

0% APR Introductory With Balance Transfer Option

The Christmas Holiday Season brings retailers 25% and more of their yearly sales. It's careful to assume the month of January most probably shows the highest consumer credit card balances. As impulse purchasing often times is the culprit in collecting more than we planned, it's convenient to see how one could get carried away during the 'season of giving.'

Now it's January and those bills have begun coming in. Two or more credit cards with elevated balances can take a bite out of your expenses. The easiest solution for many consumers is to employ for one of the many 0% APR introductory credit cards with balance transfer options. This could decrease their payment by consolidating their bills and at 0% interest to boot!

When you're searching into all the offers of 0% introductory credit cards that agreed you to transfer the balance from other cards, you need to contrast offers carefully. Be sure you read the fine print. We often times get into the habit of taking excited with the hype and fail to read the details.

When you're considering a new 0% APR credit card, watch into how long the introductory period is. It differs from card to card. It can be six months or twelve months with some newer offers up to eighteen months. How long is it running to take you to pay the balance down to where you're comfortable with it?

Then there's the give off of the balance transfer. Is there a fee for the balance transfer? Some cards do not collect a fee to transfer and others charge as much as 3%.

The 0% offers mainly apply towards any amount you transfer over from other cards; but, does it employ to new purchases? This center also varies. Once in a while it's just the 'balance transfer' amount and other times it includes 'new purchases' as well.

Another thing consumers should be anxious with when applying for a 0% APR introductory offer with a balance transfer feature, is what the interest rate is after the introductory period is over? This really can be depending by several percentage points. Is it comparable to the competitors?

Last but not least, each and every one need to be aware that if they should become negligent prior to when the twelve month period is over, that 0% APR is gone. The offerers can now charge as much as 32% in some opportunity when your account is not kept up with the terms of the card. This might put quite a dent in the balance owed and the monthly payment as well.

The 0% APR introductory proposal can be a great help to your financial situation. Just be sure to read the fine print. Know that you will be able to keep the terms and that the additional features of the card, including rewards offered, is what you're looking for.

0% APR Credit Cards - Tips & Tricks

Credit cards can be wary to be one of the many basic requirements of the modern world. Credit cards are available these days in abundance.  One type of credit card certainly is the so-called 0% APR credit card. 0% APR credit cards were characterized in the late 1980’s and to this day has still proven to be one of the most sought-after credit card types available anywhere.  As with all credit card types, there are a certain tips and tricks surrounding 0% APR credit cards that all potential card applicants should be made aware of.

With the help of a 0% APR credit card, it means that you need not only pay the notable balance; and what more you could even charge up to the limits out of having to sustain any monthly interest charges. However, once in a while, one tends to think just how these credit card companies can afford to give 0% APR credit cards, and make a profit out of it?

Even though 0% APR credit cards may not bind any monthly charges, it is sure to come with annual fees which you are force to pay for the privileges of a 0% APR credit card. These annual fees normally run from $15 to $20 or sometimes, even higher. Having a 0% APR credit card doesn’t mean that you can pay your dues whenever and whichever way you attempt to. It IS required to make your payments on time, or else, you will have to pay for high overdue fees. For each late payment, the 0% APR credit card holder has to pay fees that may range from $20 to $40. With habitual late payments, these meager amounts may accumulate to a hefty total!

It should be remembered that 0% APR credit cards are mainly offered for only a stipulated period of time. This credit card interest may hold good for only a fixed period of time, generally ranging from 3 up to 15 months. On the completion of this period, a superior rate of interest may come in vogue, usually 12% or higher. You could quickly transfer any existing credit card balances to a new 0% APR credit card to get 0% interest on the transferred balance. In this way, the credit card holder has to pay less interest for a set period of time, and thus get a chance to clear outstanding balances as fast as possible.

When applying for a 0% APR credit card, it is regularly better to read the terms and agreements of the credit card.  Not to overstate an apparent question, but why should one do so? Simply because many credit cards might come with a default rate wherein late payments not only incur a late payment fee, but it might also include a default rate that will be added to the annual percentage rate. This in turn doubles the figures on the existing balances and on the new selection made on the card moving forward.  Ouch! 

One very valuable point to take into account when applying for a 0% APR credit card is to read all paragraphs of the settlement, otherwise known as the fine print. This is because though it is illegal for a credit card company to keep their fees and charges, it is nonetheless legal for them to mention these points in small print! The 0% APR credit card companies thus normally announce in large and bold print about their 0% APR but hide the facts that this is only for a limited period of time and any extra fees which maybe included are done so in very fine print.

One more trick that is up the sleeve of 0% APR credit card companies is to install sky-high APR’s right after the amount of 0% APR balance move are paid down. In other words, the money you first pay to the credit card company is applied to the change, and any other purchases you make will be charged a high APR. Occasionally, credit card companies may also go to the extent of sending you another card than the 0% APR credit card you had initially applied for.  In this way, you are not allowed the 0% APR but a different card offer with different terms and conditions. The card issuers typically rationalize this behavior based on the card issuer find out that you do not meet the qualifications for a 0% APR credit card. Qualifications for a 0% APR credit card is generally found in the small print of the agreement, and is usually overseen by applicants!

It can thus be seen that though 0% APR credit cards do seem to be somewhat inviting, there are some loopholes and tricks to their use. As always, it is highly advisable to read the terms and conditions on the card application agreement for the 0% APR credit card, or any type of credit card application, thoroughly in order to avoid any future problems, headaches or financial surprises.

0% APR Credit Cards: How Can They Do That?

During the days when the federal bank interest rates were at its lowest, back in 2002 and 2003 to be certain, countless credit card suppliers offered 0% APR credit cards to many consumers. Needing only to pay the outstanding balance, smart consumers were possible to charge up to their limits without incurring monthly interest charges. The question that some people were asking when these cards were at their top of popularity was this: how do credit card providers made money off of this type of plan? Well, good question! Let’s analyze 0% APR credit cards and the way they definitely work and if they are still available to you today. You just might be surprised at the answers!

Annual Fees. Rely on the credit card provider, other card holders have been charged an annual fee for the charter of having a 0% APR credit card. Annual fees for some of these cards usually run from $15 to $20, even higher.

Late Fees. You might think that if customers had a 0% APR credit card that they would regularly pay them on time, right? Well, many do not. So, each payment is received late credit card providers would assess a late fee. With fees ranging from $19 to $39, that can add up in particular if someone is habitually late.

Default Rate. Oh, that 0% rate is nice on the surface. Read the “member’s agreement” and you will rapidly learn that late payments will not only incur a fee, but a “default rate” would be charged bumping up the annual percentage rate to double digit figures on existing balances as well as on new charges! If you are late you can say, “bye, bye” to your 0% APR credit card in no time.

Short Term Offer. 0% APR credit cards are still dedicate today. Almost constantly they are cards for new card holders that offer a 0% rate for a limited period of time, such as twelve months, before a higher rate kicks in, which normally is around 12%. Some cards will allow you to move existing credit card balances over to the new card and receive the 0% rate on transferred balances. What a great way to cut your costs and save money too!

Don’t worry about credit card providers having issues on making money even with low or 0% APR credit cards. Rates have since increased, in other cases dramatically, making it harder to find a low interest rate credit card. Still, great offers exist, but you must know where to find them. Looking online for your 0% APR credit card is a great way to quickly find and compare the best 0% APR offers available.

0% APR Credit Cards: A Tool To Eliminate Debt

It is entertaining to note that what started off as a marketing gimmick has now turn an almost permanent part of the credit card industry in America and today 0% APR credit cards can in reality play a meaningful role in helping a person reduce or get out of debt.

What Is A 0% APR Credit Card?

APR is the annual interest rate known in industry jargon as the Annual Percentage Rate. It is a reflection of the cost of credit. In the old days everyone paid a standard APR based on bank rates. It was generally about 18 per cent. The use of low APR came with the outgrowth of the monoline bank. These were banks that only produce credit cards and did not take any deposits or issue conventional loans. For their business model to work well large numbers were essential for these breed of initiative bankers and credit cards issuers so low APR teaser rates were successfully used to lure as many new card users as possible.

The gimmick sounds to have worked so well that today it is hard to find a credit card company that does not offer some type of incentive APR during the first 6 months or one year. The more famous credit cards offer 0% APR for the first year.

Usefulness Of A 0% APR Credit Card In Reducing Debt

A 0% APR credit card can be too much useful for somebody who wants to lessen their large credit card debt. For a chance if you have a credit card debt that remains at about $10,000 and the APR is 20% then you will end up paying a whooping $2,000 in interest payments alone. With a 0% APR credit card the $2,000 could all go towards lessen that crippling debt. It is therefore clear that 0% APR credit cards can offer much needed financial breathing room for somebody in a serious credit card debt situation.

Consolidation Or Transfer Necessary To Benefit From 0% APR Credit Cards

Moving a credit card debt or credit card debt consolidation are all-important first steps that will need to be obtain before a person in deep credit card debt can enjoy the profit of a 0% APR credit card. The objective here would be to have all the person’s outstanding debt payable to one credit card company and at a 0% APR rate.

The value of 0% APR credit cards in helping an individual or business to get out of credit card debt cannot be understated.

Even though many potential card users place a lot of value in being able to obtain a 0% APR credit card, the truth of the matter is that it is only alluring and beneficial to two groups of people. Firstly persons able to reside their credit card balances on a month to month basis to whom the 0% APR rate means that their cost of keeping a credit card is very minimal. Secondly those in debt also benefit because the 0% APR credit card greatly assists them in their efforts to reduce their debt.

Copyright 2005 Ed Vegliante.

"Short And Fat" Ltc Policies Beat "long And Skinny" Ones

Long term care insurance rule have an important component called an interest period which greatly affects premium costs. This article discusses what I call "Short and Fat vs. Long and Skinny LTC Policies".

That is right -- Short and Fat LTC policies! So what is a benefit period anyway?

The benefit period is the number of years that ONCE you go on demand (need help in bathing and dressing or have some cognitive impairment (Alzheimer's or similar ailment) that the insurance company will repay the daily or monthly interest that you chose when you applied for the policy.

So if you bought a benefit period of say 5 years, once you suitable for benefits, and satisfied the deductible (how many days of care that you need to pay out of pocket), the insurance company will pay those benefits for a maximum of 5 years in this case.

The benefit period, whether a set number of years say 6 years for example or unbounded years are the MAXIMUM amount of time, if you used your FULL chosen every day or monthly benefit that your policy would pay on a claim.

If you had Alzheimer's for 9 years, the policy benefits might have been exhausted after those 5 years and you might be paying for the last four years from your own money.

Most insurance companies have a number of interest periods to choose from. Typically they are 2, 3, 4, 5, 6, 7, or 10 years OR an Unlimited benefit period (say you went on claim for 35 years due to being in a wheelchair or something).

Most LTC policies have at least four or five different benefits periods from the above selection which you can choose from for your policy.

The benefit period, whether a set number of years say 4 years for example or unlimited years are the MAXIMUM amount of time, if you used your FULL chosen daily or monthly profit that your policy would pay on a claim.

Now for the "Short and Fat" part...

Long ago there wasn't too much variation in the premium prices for a 5 year benefit period contrast to an unlimited policy. So since there wasn't much of a cost difference, many clients select the Unlimited benefit to protect against a HUGE possible disaster of needing help in bathing/dressing, etc. for DECADES -- not just a few years.

But today, there is a much larger difference in the premium prices for unlimited. So what to do?

First of all let me say that one of the largest LTC insurance companies has statistics that show that only 11% of their claims last longer than five years. Of course this means that about 90% of the claims last shorter than five years. So the odds are very much in favor of never needing a policy that would pay unlimited years.

So compared with a policy that offers an Unlimited benefit period, you can get a much higher daily/monthly dollar benefit that you are MUCH more likely to actually use and benefit from. Any unused dollar benefits will extend the number of years of your benefit period and not be lost.

Also you are much more likely to use a higher dollar amount for 2-4 years than having to pay extra money out of your pocket during care with a benefit period that is probably never going to be reached.

But... if you are pretty young (30-55) an Unlimited policy still might be a choice to look at. Older ages will find Unlimited years of benefits very expensive and there is likely a better way to structure a policy.

So knowing the above statistics, would it make more sense to you to have a Short and Fat policy (one with a larger daily or monthly dollar benefit for a shorter period of time)verses... a smaller daily or monthly dollar benefit for a longer period of years?

I'd put my money on Short and Fat!!

So if you would normally consider a policy that pays $150 per day for 7, 10 years or an Unlimited benefit period... you MIGHT seriously consider a policy that would pay $180-$200 per day for three to five years instead.

No sense in paying money out of pocket during the 3-5 years you are most likely to remain on claim.

Keep in mind that in 20 or 30 years the fill inflation policy rider will work in your favor by giving you much more pick out power to pay for care by starting out with a bigger initial benefit!

The conflicts are pretty good that the insurance company will pay more out for your care under these conditions.

10 REASONS TO START TRADING FOREX!

More and more well disclose investor and entrepreneurs are varies their traditional investments like stocks, bonds & commodities with foreign currency because of the following reasons:

1) FOREX is the huge financial market in the world.

With a daily trading volume of over $1.5 trillion, the spot FOREX market can absorb trading sizes that dwarf the competence of any other market. In fact, when contrast with the $50 billion daily market for equities or the $30 billion futures market; it becomes rapidly apparent this gives you, and millions of other FOREX traders, almost endless trading liquidity and flexibility.

2) FOREX is a True 24-hour market.

The FOREX Market never sleeps.  Trading place can be entered and exited at any moment around the globe, around the clock, 5.5 days a week. There is no expectancy for an opening bell as in the case of trading stocks. It is a 24- hour, continuous electronic (ONLINE) currency exchange that never closes. This is very likeable for you if you want to trade on a part-time basis, because you can select when you want to trade: morning, noon or night.

3) There is never a Bear Market in FOREX.

You can have paths to a seamless exchange of money. Currencies trade in "pairs" (for example, US dollar vs. JPY (YEN) or US dollar vs. CHF (Swiss franc), one side of every currency pair (for example, USD/CHF) is regularly moving in relation to the other. Thus, when you buy the said currency, you are actually simultaneously selling the other currency in that particular pair. As the market moves, one of the currencies will enlarge in value versus the other. Of course, it is up to you to choose the correct currency to be long (you bought) or short( you sold).

4) High Leverage - up to 400:1 Leverage.

You are approved to trade foreign currencies on a highly leveraged basis - up to 400 times your investment with Fenix Capital Management, LLC and with some other brokers.

Standard 100,000- US$ currency lots can be traded with as little as 0.25% margin, or $250.

Mini FX accounts are permitted to trade with just 0.25% margin, meaning, just $25 allows you to control a 10,000-unit currency position.

Futures traders, who are skilled to margin requirements usually equal to 5-7%-8% of the contract value, will immediately characterize that the FOREX market provides much greater leverage, and for stock traders, who must post at least 50% margin, there’s no comparison. If you’re in regards for an efficient use of trading , trade the Forex Market.

5) Price Movements might be Highly Predictable.

Currency prices in the FX market usually repeat themselves in relatively predictable cycles, creating trends. The strong trends that foreign currencies develop are an important advantage for traders who use the "technical" methods and strategies.

Unlike stocks, currencies have the tendency to develop strong trends. Over 80% of volume is speculative in nature and, as the end; the market frequently overshoots and then corrects itself. As a technically-trained trader, you can easily recognize new trends and breakouts, to enter and exit positions.

6) YOU don't pay commissions or fees to trade FOREX

When you trade FOREX, through Fenix Capital Management LLC (FCM) you can do it totally FREE of commissions and fees, regardless of your account size.

Fenix Capital Management LLC, requires a very low minimum amount to open a brokerage account, only US$ 200 and they do not charge commissions or fees to trade or to retain an account, regardless of your account balance or trading volume.

7) YOU don't have to pay trading fees or exchange fees.

There are nothing of the usual fees, which futures and equity traders are accustomed to pay:

NO exchange or clearing fees,

NO NFA or SEC fees.

Because currencies trade over-the-counter (OTC), via a global electronic network, in FOREX, what you see on your trading screen, is what you get, agreed you to make quick decisions on your trades without having to worry or account for fees that may affect your profit/loss or slippage.

In the equity and commodity markets, you must pay both a commission and exchange fees. The over-the-counter structure of the FX market take away exchange and clearing fees, which in turn lowers transaction costs.

8) HOW to Forex brokers make money if they don't charge commissions?

Like all traded financial products, over-the-counter currency trading involves a bid/ask spread, which represents the prices at which your counterpart is willing to trade. Your broker will receive a part of this bid/ask spread.

Because the currency market offers round-the-clock liquidity, you receive tight; competitive spreads both intra-day and night. Stock traders can be more unstable to liquidity risk and typically receive wider trading spreads, especially during after-hours trading.

9) Market Transparency.

Market transparency is highly desired in any trading environment. The better the market transparency, the more efficient the market becomes. Different to other markets where transparency is compromised (like in the many recent scandals), FOREX markets are highly transparent (i.e., analyzing countries, and having access to real-time research / news, is easier than analyzing companies).

Because of this transparency, as an FX trader, you will be able to apply danger management strategies in accordance to your fundamental and perceptive indicators.

10) Instantaneous Order Execution

The FX market offers the top level of market transparency out of all the financial markets. Because of this, order execution and fill confirmation usually occur in just 1-2 seconds.

In Forex, order execution is all-electronic and because you'll be trading via an Internet-based platform, instantaneous execution is routine.

There are no exchanges, no traditional open-outcry pits, no floor brokers, and consequently, no delays.( will be continued )

How to Start Trading The Forex Market?

How money is quoted and what moves every currencies?

ONE of the best benefits in FOREX Trading is

The amount of cash you need to place a trade (known as "margin") is all that can be lost!

You need to know, that beyond the super-high leverage offered by some Forex brokers up to (400:1); meaning if you put up $ 1000 the broker will agree you to trade like you really have $400.000).

Forex trading is still less risky than Stock or Futures Trading, where you can lose more than you have deposited in your account.

This type of LEVERAGE does NOT EXIST in the equities or futures market

In the Equities or Futures markets, very often, sudden and dramatic moves occur, against which you can’t defend yourself, even by having placed your protective stops.

Your position may be rid of at a loss, and you’ll be liable for any resulting deficit in the account.

But because of the FX market’s deep liquidity and 24-hour, continuous trading, dangerous trading gaps and limit moves are almost removed.

Orders are perform quickly, without slippage or partial fills. And eventually, there are no margin calls. For your protection, the broker will automatically close out some or your entire open place if your account equity falls below the level required holding the positions.

Think of this as a final, automatic end, always working on your behalf to avoid a debit balance.

Currencies are commercialize in dollar amounts called “ LOTS”

In Forex trading, with most Brokers, you have the selection between 2 different lot sizes.

Standard Lots or Mini Lots.

One Standard lot is equal to $100,000 in currency. The margin needs, using a 400:1 Leverage, would be US$ 250, in other word you control $100,000 worth of currency for only 250 US dollars.

You mean, depositing $250 with a broker, I could trade 100,000$ worth of currency ???

NO, be aware, that your account size has to be more than the required margin of US 250. For example, if you place an order to buy 1 Standard lot ( @100,000) of USD/JPY and USD/JPY is quoted as 112.10/112.13, you buy USD/JPY at 112.13.

Your account balance would be $220, because you paid 3 pips or $ 30 for this trade.

If you would close this trade quickly, you have to sell it at 112.10 (the bid price) , for a loss of $ 30.

In fact you could not get carry out on this trade, as the brokers trading platform would decline your order, for the reason of having less funds in your account).

So, your account balance has to be minimum $280. $250 for margin and $30 for the trade.

BUT....IF, after you have initiated the trade to buy USD/JPY at 112.13, and the USD/JPY falls the next second 1 pip ( approx. $8), your position would be closed automatically, because of margin deficit.

I will discuss later about having an enough account size to trade the Forex Market.

Currencies are always traded in pairs in the FOREX. The pairs have a unique notation that expresses what currencies are being traded.

The symbol for a currency pair will always be in the form ABC/DEF. ABC/DEF is not a real currency pair, it is an example of a symbol for a currency pair. In this example ABC is the symbol for one countries currency and DEF is the symbol for another countries currency.

Some of the most common symbols used in Forex are:

USD - The US Dollar

EUR - The currency of the European Union "EURO"

GBP - The British Pound or cable

JPY - The Japanese Yen

CHF - The Swiss Franc

AUD - The Australian Dollar

CAD - The Canadian Dollar

There are symbols for other currencies as well, but these are the most commonly traded ones.

A currency can never be traded by itself. So you cannot ever trade the USD by itself. You always must to BUY one currency and SELL another currency to make a trade possible.

Some of the most traded currency pairs are:

EUR/USD Euro against US Dollar

USD/JPY US Dollar against Japanese Yen

GBP/USD British Pound against US Dollar

USD/CAD US Dollar against Canadian Dollar

AUD/USD Australian Dollar against US Dollar

USD/CHF US Dollar against Swiss Franc

EUR/JPY Euro against Japanese Yen

The currency left of the / is called the base currency.

The currency right of the / is called the counter currency.

When you place an order to buy the EUR/USD, for instance, you are really buying the EUR and selling the USD.

If you were to sell the pair, you would be selling the EUR and buying the USD. So if you buy or sell a currency PAIR, you are buying/selling the base currency.

The best method to remember is, by just thinking of the entire currency pair as one item.

If you buy it...you buy the first currency and sell the second currency. If you sell it...you sell the first currency and buy the second currency.

That way you would to be able to short-sell with no prohibition so you could make money when the market drops as well as when it rises.

The problem with traditional stock market or goods trading is that the market has to go up for you to make money. With FOREX trading you can make money in all directions.