The main foreign currency trading market players are large banks that create currencies rates, financial and broker companies, investment funds, pension funds and others. They are determining the market. Moreover, in the recent years central banks have started to play a more significant role in currencies rates regulations: they are avoiding speculations and extreme increases and dramatic decreases in order to prevent crises and to back up the financial balance. And, finally, medium and small forex currency traders are participating in the market. They are aimed to earn by forecasting currencies rates changes and simple operations like selling and buying. In most countries some small forex market traders enter the market investing just as little as 10 000 USD. The smallest market traders deals are operated by medium size dealing companies. A dealing company provides a small investment holder with a forex trading plan, forex trading education and a credit line or so-called dealing arm that is much more considerable than the deposit amount. For example, the dealing arm that exceeds the primary deposit of 25 thousand by 40 times enables one to operate the amount of money over 1 million USD. I.e. private investment constitutes just 2-5% of the operations conducted. The credit arm dealing approach is called margin trading.

Margin trading seems attractive due to it’s accessibility. Investing into security papers is by no means attractive for most market players: it’s not worth while. Sure, no one can deny the fact that the US Federal Treasury obligations are the most reliable, yet, taking into account their high cost and low liquidity it’s hard to attract many investors for long-term investments. Stocks profits are much higher, yet, the dividends depend on success of operations of a certain issuer. A more interesting investment is buying stocks with the aim of earning on their cost depending on currency rates changes. Yet, in order to get rich this way, you have to invest a whole lot more than in currency. Margin trade has no such limits – you may sell and buy according to your expectations and you may invest just 2 – 5% of the turnover you will use.