Being the largest market in the financial marketplace, Forex is estimated to have a turnover of $4 trillion a day. This amount is 50 times larger than the daily turnover of the stock exchange market. Because of this, many are jumping into the Forex market because they see the huge potential and attractive profit factor. The rising popularity of Forex is not of coincidence. It is because of its many advantages that traders are able to enjoy if they trade Forex. This article will reveal to your 5 of the main advantages that you can get with Forex trading.
1. Liquidity - The Forex industry presents a huge liquidity to its traders due to its huge volume. This means that traders will have no problems entering and existing their trades. So, no matter what time you are trading, you will not have any problems with your transaction. This means traders can trade with ease and do not have to worry a lot on unsuitable times to trade.
2. Low Transaction Cost - In the Forex market as we know it has a huge turnover or a big pile of liquidity. This directly influences the pricing of the cost for trading. However, a trader will not be required to pay any commission. Instead, the trader will need to pay a spread. This spread is something that every broker includes within their operation. The spreads charged are relatively low and it depends on the bid and the ask price. Some brokers offer fixed spread while others offer variable spread that is adjusted according to the market.
3. 24 Hour - The Forex market never sleeps, at least during the weekdays. To be precise, it opens from 5pm eastern and runs till Friday 5pm eastern in the afternoon. It runs throughout this entire time. The capital and liquidity simply moves throughout these times and is only differentiate by the different opening times of banks and financial institution throughout the world.
4. Leverage - Probably the best advantage that anyone can get from Forex trading. However, it can also be deadly if it is misused. Leverage is very powerful to increase your earning possibility but it may also destroy a trader if the trader does not know how to use it. In the fore market, traders are given the leverage from 1:100 to 1:500. So, if a trader has $1000 in his trading account, he will be able to have a$50,000 amount in trading if he is given the leverage of 1:50. I hope you get the idea. So, if the market moves drastically, it can be very dangerous for the trader if he is trading with a high risk.
5. Easy to Analyze - Forex are traded in currency pairs. Therefore, traders can focus on a certain pair instead of having to monitor all the news out there. For instance, if a trader is trading the Euro-Dollar pair, they will only have to focus on the news that is related to that pair. However, it is still an ongoing debate on whether Forex is easier to analyze if you compared it to the stock market.
No matter what, a beginner in Forex should always trade with low leverage. As time goes by, they can move up their risk factor if they can make consistent winning trades.
1. Liquidity - The Forex industry presents a huge liquidity to its traders due to its huge volume. This means that traders will have no problems entering and existing their trades. So, no matter what time you are trading, you will not have any problems with your transaction. This means traders can trade with ease and do not have to worry a lot on unsuitable times to trade.
2. Low Transaction Cost - In the Forex market as we know it has a huge turnover or a big pile of liquidity. This directly influences the pricing of the cost for trading. However, a trader will not be required to pay any commission. Instead, the trader will need to pay a spread. This spread is something that every broker includes within their operation. The spreads charged are relatively low and it depends on the bid and the ask price. Some brokers offer fixed spread while others offer variable spread that is adjusted according to the market.
3. 24 Hour - The Forex market never sleeps, at least during the weekdays. To be precise, it opens from 5pm eastern and runs till Friday 5pm eastern in the afternoon. It runs throughout this entire time. The capital and liquidity simply moves throughout these times and is only differentiate by the different opening times of banks and financial institution throughout the world.
4. Leverage - Probably the best advantage that anyone can get from Forex trading. However, it can also be deadly if it is misused. Leverage is very powerful to increase your earning possibility but it may also destroy a trader if the trader does not know how to use it. In the fore market, traders are given the leverage from 1:100 to 1:500. So, if a trader has $1000 in his trading account, he will be able to have a$50,000 amount in trading if he is given the leverage of 1:50. I hope you get the idea. So, if the market moves drastically, it can be very dangerous for the trader if he is trading with a high risk.
5. Easy to Analyze - Forex are traded in currency pairs. Therefore, traders can focus on a certain pair instead of having to monitor all the news out there. For instance, if a trader is trading the Euro-Dollar pair, they will only have to focus on the news that is related to that pair. However, it is still an ongoing debate on whether Forex is easier to analyze if you compared it to the stock market.
No matter what, a beginner in Forex should always trade with low leverage. As time goes by, they can move up their risk factor if they can make consistent winning trades.
Do you think that to dramatically improve your success rate you have to read tons of thick books, buy expensive software and spend countless hours of learning more about Forex?
What I'm going to share with you is something very EASY to use and very POWERFUL at the same time.
Let me give you an EXAMPLE:
Imagine you trade a system that makes 50% winning trades, but another 50% are losing trades. If you increase your odds of winning by only 20%, that would make 70% winning trades and 30% losing trades.
Well, HOW TO accomplish that?
Just pick the best trending pair at the current time and simply follow the trend! I have found ONE INCREDIBLE TOOL that continuously scans the Forex market and picks the most reliable trending pairs for you.
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By taking signals in the direction of a strong trend you would REDUCE UNNECESSARY LOSSES and increase the odds of winning. You need to know "how well" the market is trending to avoid very short-term trends.
STOP hunting the market for every potential trade. Pick only the best trending pairs and time frames and DO NOT take any trading signals in the choppy market (unless you know exactly what you are doing).
Successful traders keep it simple and this is the way how the pros made fortunes in the markets - by trading less and making more.
To increase the profitability of any system or robot you are currently using, check out this easy and powerful ultimate solution:
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