What is your definition of forex? Is it an adventure, a source of income, a challenge, or even a pastime? What does the word ‘forex’ bring to mind? Whatever it is, trading may be fascinating so long as you aren’t losing money. Are you confident that you’re fully aware of what’s required to trade foreign currencies? Here are some facts that should have you reconsidering. The cable is the name given to the British pound/US dollar currency pair The Great Britain Pound and the United States Dollars are the two of the most traded and exchanged currencies in forex trading. The pair, on the other hand, is known as ‘the cable’. The term ‘cable’ comes from the fact that before satellite and fibre optic cables were invented, the London and New York Stock Exchanges were executing transatlantic currency exchanges via transporting information with a telegraph cable. Trading goes way back

When it comes to finance, contracts for differences involve making cash payments for differences in settlements rather than delivery of securities and assets. CFD trading comes with advantages but as it appears, those advantages mask the risks associated with it. In that regard, U.S. citizens and residents are banned from opening both foreign and domestic CFD accounts. Most people would view that as an invasion of freedom but a closer look, and you get to understand why. Let us look at some of the reasons why this investment strategy is banned in such a developed country. Counterparty Risk A counterparty is just the organization that offers the assets in financial transactions. When selling or buying a CFD, the contract is the only asset being traded in the contract provided by the CFD provider. Doing this exposes the investor to the contract’s issuer counterparties such as other clients that they conduct