Why Trading Forex?

Posted by: | Posted on 8:36:00 PM | Post Categories
Why Trading Forex?

24-hour open market:
In Stock market, we have to wait for opening market. In addition, we can trade here limited hour of the day. However, in Forex market we can trade in 24 hour of the day. Therefore, you can trade here at suitable time on part-time basis in morning, noon, night, during breakfast or at sleep.


24-hour open market

Easy Entry:
In stock market, you have to start with a standard amount. In addition, you can think that there are huge funds needed to start Forex trading. Good news for you, as a currency trader you can start minimum account deposit of $15. Many Online Forex brokers offer “mini” and “micro” trading accounts.

Free accessories:

In a stock market, you have to open an account with minimum charge and with minimum deposit. There are no opportunity to practice, just open an account and go to live trade. However, in Forex market many online Forex brokers offer free “demo” accounts to practice trading and build your skills. In addition, you will get real-time Forex news and important data’s. You can learn trade or trade in demo account without any risks.
High Liquidity:
Because of the Market nature, "Forex market" is high liquid. In other market, you have to wait for seller. Personally, I did not wait in Forex market for a second. When I made trade, just mouse click took time for clicking. This is huge advantage for Forex traders. You also set in your online trading platform to automatically close your position once your desired profit level reached, or close a trade if a trade is going against you. You also set pending orders for certain rate for certain period.
High Leverage:
In stock market, you will get very low advantage of leverage. On the other hand, in Forex market, a small deposit can control a much larger total contract value. High leverage gives opportunity to take big profits, and at the same time it brings high risk to your capital.
For Example, a Forex broker offering 1:50 leverage, which means that a $500 margin deposit would enable a trader to buy or sell $25,000 dollars. Without proper risk management, this high leverage can lead to large losses as well as gains. Now many Forex brokers 1:3000 leverage.  Which means that a $500 margin deposit would enable a trader to buy or sell (I can’t calculate with my calculator, It’s you duty to calculate :P) dollars.

High Leverage

No fixed lot size:
You can start as low as 0.001 lot to big Lot (100, 200, 500, 1000).  Size of maximum lot can vary broker to broker and Dealer to dealer. In the futures markets, lot sizes are determined by the exchanges. So it also one good reason to enter Forex market.

Low transaction costs:
The retail transaction cost is very low (the bid/ask spread). It is typically less than 0.1% under normal market conditions. At larger Broker or dealers, the spread could be as low as 0.07% and of course, this depends on your leverage.
Low transaction costs


 

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Adam
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June 30, 2016 at 2:16 PM ×

very interesting topic., Forex trading is really a good opportunity to bring big profits to its traders. Traders should develop their respective trading strategy which will consistently work for his or her advantage.

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