What are the benefits of the Forex market?
Forex is the world’s largest financial market, and by 2017, its daily trading volume has grown dramatically to $5.3 trillion. In the past decade, Forex online trades have become very well-known among traders, and this is due to the great advantages of this market. Forex benefits include:
There is no time limit on the Forex market and you can trade overnight. The market is open 5 days a week (from Monday morning in Asia until Friday evening in New York). Keep in mind, however, that currency liquidity will be easier at the time of the opening of the domestic markets, as well as during market overlaps, when many people are active in the market. Regardless of whether it’s at 6am or 6pm, there are always traders in the corner of the world who are constantly trading in foreign currency.
Trading in markets is increasing or decreasing
Unlike many other financial markets that are difficult to sell, Forex has no limits on the sale of currencies. If you think the currency rises, buy it and if it goes down, sell it. In other words, in any case you can earn or lose money! Stock markets fall, but in Forex when the value of a currency is reduced, another currency value will increase, which is another opportunity to benefit you.
Low transaction costs
Forex trading is at the lowest cost, so it’s easier to get Forex as an investment. The MetaTrader 4 platform does not have the cost to run or run; the main cost of the deal is the spread (the difference between the purchase price and the selling price). You can see the difference in price on your trading system at no other hidden cost, the transaction cost is very clear. Forex trading is much more affordable than other financial markets.
Unmatched liquidity (Liquidity)
Since Forex, with a focus on a few currencies, is a $ 5 trillion market a day, there are always lots of people involved in trading. For this reason, you can easily trade in even large volumes or close your transactions.
Since the amount of liquidity in the Forex market is very high, you can deal with significant leverage (for example, your purchasing power will be in an account with $ 1,000 and a leverage (1: 200) to $ 200,000) . This way you can even benefit from the smallest changes in the market. The lever acts like a double-edged sword, as it adds significantly to your profit, it can also increase your loss.
Even those who do not have much capital to start trading have access to the Forex market. Forex There are brokers that allow you to open a trading account with a minimum deposit of $ 1 (mini accounts) or $ 25 to $ 100 (micro accounts). Using leverage, you can control capital multiples of your deposit. On the other hand, in the Forex market, you set the amount of your transaction, so traders can trade at a minimum of 0.01 lots and with a minimum deposit of $ 100.
Free Demo Account (Demo)
Take risks without trading. Many Forex brokers offer test accounts to let you know about the weaknesses and strengths of your trading system without losing even a tradition. If you are new to this, take advantage of this great advantage and open up your Forex account by opening a Forex account. In addition, with the help of your tutorials, you will learn how to use the trading platform better.