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	Trading on Margin
	Trading on margin is considered to be one of the most widely used strategies in the financial investment world, as this system increases the purchasing power and reduces the financial burden that is required to trade in the financial markets.

	The margin system depends directly on the leverage of the investor's account.

	Example
	If an investor opened a margin account with $5000 deposit with a leverage of 1:100, this means that the purchasing power for this investor will be multiplied from $5000 to $500,000.

	In other words, if the investor wants to buy/sell 100,000 euro for example, he will only need $1000 as a required margin to make such a deal.

	Example in Figures

	John will use $1500 from his own margin account to be able to buy 150,000 British pound on the price of 1.8645.

	Two days later the price of GBP/USD moved up to the level 1.8733 so decided to sell the 150,000pound.

	What is the result of this deal?

	Profit/loss
	= (sell price-buy price) × traded volume = (1.8733-1.8645 × 150,000)
	= $1320

	We can notice from the examples above that the margin system gave the investor the opportunity to make large trades and gain the whole benefit from the size by using relatively small amounts of money.

	This system has the advantage to reduce the financial burden necessary, and it maximizes the purchasing power of his trading account.

	We have to also note that the increasing expected profits resulting from this strategy are accompanied by an increased level of risks for the same investment in case the market moves in the opposite direction.

	In order to minimize the level of risk, we always recommend strategies such as the stop loss, when engaging in any market trade.

	Over the Counter Markets (OTC)

	The technological revolution in the media, communications, and computer networks has made the world a global village, affecting our lives in different ways.

	The investment sector has gained the biggest share from all these expansions and technological revolutions, as it increased the speed and flexibility of trading.

	Nowadays, all investors all around the world can buy or sell any financial instrument of their choice, whether it is over the phone, mobile phones or through internet. All they have to do is to contact any of the brokerage firms around the world to perform their orders based on current market prices, without having actually to be in the exchange location.

	A major element is that brokerage firms have their own diversified inventories which fit all investors’ demands.

	Trading over the counter is a widely used method of trading in the Financial Markets all around the world because the process of buying and selling financial instruments takes place between the investor and the broker directly, without having to go over all the complications accompanying this type of operations.

	One of the biggest computer networks for trading over the counter in the world is NASDAQ. There are numerous companies in the world that have become eligible to be listed in the primary and the secondary markets.

	However, they still prefer to be traded in over the counter market because of its high level of flexibility and liquidity.