BENEFITS OF FOREX TRADING
While every market has its own attraction, the advantages of trading Forex are quite underrated. We are here to guide you through the main benefits of this market.
The Forex market is worldwide so trading is pretty much continuous as long as there's a market open somewhere in the world. Trading starts when the markets open in Australia on Sunday evening and ends after markets close in New York on Friday. Forex trading operates 24 hours and 5 days a week.
Forex trading is that the market is open 24/5. This means that you do not have to adjust your schedule for the market opening hours, as you can trade all day long. In normal market conditions you can trade out of your positions with ease, as there is a near constant supply and demand in the Forex market.
Trade FX Market anywhere in the world with internet connection. If you are travelling or not at work station, then also you can trade. All you need is an internet connection and can access the forex market market from anywhere in the world. Forex works on Trade Anywhere policy.
Forex is the most liquid market in the World. Why is that? Because there is a constant supply and demand for money. Liquidity is the ability of an asset to be converted into cash quickly and without any price discount. In Forex, this means we can move large amounts of money into and out of foreign currency with minimal price movement.
The cost of a transaction is typically built into the price in Forex. It's called the spread. The spread is the difference between the buying and selling price. The Forex market has no restrictions for directional trading. This means that if you think a currency pair is going to increase in value, you can buy it or go long. Similarly, if you think it could decrease in value, you can sell it or go short.
When it comes to trading, the rule of thumb is – the bigger your capital, the larger your trade size. Leverage is an important weapon in the armoury of Forex benefits. When employing that leverage, a trader can buy or sell up to 500 times more funds than he actually has. This way, one can easily generate more substantial gains (or losses) even without having a large capital at your disposal.
Above are the five main Forex trading advantages. Of course there are more, but the aforementioned ones are the most important, especially for the novice trader.
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