Tip of the Day
If an investor is new to FX (forex), then it is a good idea to seek out only dealers that have opted to become members of the NFA (National Futures Association). However, without true oversight, some really interesting transactions occur in the FX market. For one thing, position size is unlimited (unlike futures) so it is possible to buy as much currency as one can given the amount of capital available. There also is no up-tick rule in place to prevent momentum from continuing downward when currencies really begin to lose value (as the result of a national emergency, for instance). And perhaps most surprising of all - insider trading is not a crime in the world of FX!