Why Trade in the Forex Market?
The Foreign Exchange Market (FOREX) is three times larger than
the total amount of the stocks and futures markets combined. It
is becoming more and more popular.
Because there is neither physical location nor a central
exchange for FOREX it can operate 24 hours, moving across the
time zones from one financial center to another, from Monday to
Friday.
There are great opportunities in the FOREX market because of the
constant movements of the exchange rates. The currencies are
always traded in pairs, and traders can make profits both when
the prices go up and down. There is always good market trading
opportunity for a FOREX trader in any economic outlook.
Everybody can learn how to trade in FOREX. Of course the
importance of proper education and training before entering live
trading cannot be overestimated. Without it the chance of
success is almost zero. Fortunately everybody can practice with
a demo account before entering live trading. The good thing
about FOREX is that the amount of money someone needs to place a
trade (known as "margin") is all that can be lost.
Of course, with the proper self-taught education traders will
win more than they will lose, but everybody should know that
despite the high leverage of FOREX trading (200:1 is possible,
which means that when a trader puts up $1 the trading vendor
will allow the trader to trade it as if the trader had $200),
it's still less risky than futures (commodities) trading. And
when someone trades stocks he or she can't get this type of
leverage. Margin is low and leverage is high, so there is
possibility of big profits (but losses, too).
There are no commissions in FOREX. No exchange fees, no
government fees, no brokerage fees and no clearing fees. There
are no middlemen, too. Clients interact directly with the market.
Unlike in other markets it is possible to start trading with
only $100 with a mini-account. The transaction cost is very low
and the FOREX market is the most liquid, so the trader can enter
or exit it in almost any condition.
Because of the FOREX market's liquidity and twenty 24 hours
continuous trading, dangerous trading gaps and limit moves are
eliminated. Orders are executed very quickly, without slippage.
With a good research it is easy to find good brokers, who will
automatically close some or all of open positions if the
account's equity falls below the level required to hold the
positions. It is impossible to lose more than the amount of
money in FOREX account.
Everybody can trade online from home. It is a great possibility
for people who want to work from home, but don't like selling
and marketing. All that is needed to start trading is a computer
with Internet access and a proper training.
Because the FOREX market is so huge, there is no possibility of
someone controlling the market price for a long time. There is
no possibility of insider trading and the governments influence
is very limited. Trading currencies is much simpler than stocks.
There are only a few major currency pairs. No need to think
which of thousands of stocks to trade.
There is no waiting for months like in futures market. Trades in
FOREX rarely exceed two days.
The enormous marketplace of FOREX will grow bigger as more
people are joining it every day.
To start learning more about FOREX visit:
http://www.currencytradingmethod.com