Why trade Forex?
24 hour trading,One of the major advantages of trading forex is the opportunity to trade 24 hours a day from Sunday evening (20:00 GMT) to Friday evening (22:00 GMT). This gives you a unique opportunity to react instantly to breaking news that is affecting the markets.Superior liquidity,The forex market is so liquid that there are always buyers and sellers to trade with. The liquidity of this market, especially that of the major currencies, helps ensure price stability and narrow spreads. The liquidity comes mainly from banks that provide liquidity to investors, companies, institutions and other currency market players.No commissions,The fact that forex is often traded without commissions makes it very attractive as an investment opportunity for investors who want to deal on a frequent basis.Trading the “majors” is also cheaper than trading other cross because of the high level of liquidity.
The active Forex market basically follows the sun around the world. At anytime of the day or night, you can find an active pair to trade. The market is open 24-hours a day/ 5 1/2 days a week. Those with full time jobs are able to trade Forex after work, before work and on Sunday evening. This is a real advantage for many traders.
Forex trading has two major facts: – liquidity and availability. Its open 24 hours a day and it’s the most liquid market in the world. People say that it is risky to trade Forex but if you invest money anywhere, there is a risk. First you take full knowledge of that then invest your money. Forex presents more opportunity to make money or lose money much faster than with mutual fund. If you trade Forex so you should take full knowledge of Forex trading and Forex affiliate. If you talk about investment in any platform like Forex or mutual fund so I would say that everything is risky. Be wise take knowledge and then trade. Forex trading does not necessarily have to be risky. Forex trading has great opportunity even for smaller investments.
Some of the major reasons are: – Availability: It’s open 24 hours a day, 5 days a week, so we are able to make trades and win money any time we want. It’s a market without overnight gaps or interruptions and a trader can have profitable market conditions at any time; – Liquidity: It’s the most liquid market in the world, having around 33 times more liquidity than the New York Stock Exchange and NASDAQ together and trades are always executed and in seconds; – Accessibility: It’s a market where most brokers charge no commissions for trading on Forex. Some brokers also let the investors to open accounts with no minimum amount required, and others with minimums of around $100 or $300 only. It’s possible to trade in some brokers with as low as $0.1 amounts; – Leverage: In the Forex markets, traders can leverage easily their investments with as high as 400/1 leverages or more (anyway it’s recommended not to go beyond the 10/1 level of leverage); – Short Selling: Possibility of taking short p
