Top 5 advantages in Forex trading
There are many benefits and advantages for trading Forex.
Here are the 5 top reasons why so many people around the world are so fond of Forex trading:
1. Forex never sleeps
Forex is a 24-hours market. Traders don’t need to wait for the opening bell. This kind of trading is suitable for people from all around the world – because they are not depending on the working hours of a specific country or region.
This is also great for those who want to trade on a part-time basis, and do it before work hours or after it – without being limited by their full-time job. They can choose when to trade – in the morning, noon, evening or even at night when everyone else is sound asleep.
2. High Liquidity
Due to its massive size – the Forex market is extremely liquid. It’s an advantage because it means that a trader can instantly buy or sell any kind of currency - and there will always be someone else in the market to take the other side of his trade.
Also, a trader never gets stuck - he knows it’s always possible to enter/exit a deal.
Additionally, a trader can set his online trading platform to automatically close his position once his desired profit level has been reached (limit). And/or close a trade if it’s going against him (stop loss).
In Forex - Trading profit margins are not limited.
Leverage is a major advantage of Forex trading – a trader can start up with just a small initial deposit to enter a trade – and his margins could still get very high.
Margined trading can be a more efficient use of one’s capital because he only needs to provide a percentage of the overall value of his position, while still maintaining full exposure to the market.
In other words – one can increase his profit potential if the market moves in his favor, and loss potential if the market moves against his position.
Due to massive trading volume in the Forex market, it is almost impossible for big investors, groups or even banks to intervene in the markets or falsely determine the value or direction of any currency or another.
5. Demo accounts
Most big online Forex platforms offer demo accounts to clients who want to practice and understand trading before they jump in the water.
- by Roger Gain