why forex?

    Forex market has so many advantages that made it the most popular financial market in the world. These advantages are:

 

24-hour trading

  

    One of the key elements behind the forex popularity is the fact that its open 24-hour a day from sunday evening to friday night. Trading follows the clock,opening on monday morning in Wellington,Newzeland,progressing to Asian cities like Tokyo before moving to London and closing on friday evening in Newyork.

   The fact that prices are available to trade 24 hours a day helps to ensure the price gapping (when a price jumps from one level to the next without trading in between) is less and ensures that traders can take a position whenever they want,regardless of time.

 

low margin

 

   You can open an account in forex market with low amount of money and trade comfortably without any limitations.This is because of the leverage the market give the traders for every single position.If the leverage is 100 that means for every 1 lot trade we need 100,000 usd ,but the trader only pays 1000 usd and the 99000 remaining is paid by the market.That means 100 times credit.

 

High liquidity

 

   Forex market is the most liquid market in the world.With only one click you can open a position without any limitation,any time or amount you want.You can also open and close your account and withdraw your money like other bank accounts.

 

Two way trading

 

  In the physical markets you can make a trade only in one way;buying at low and selling at high.But in the forex market because of not being physical, you can also sell at high first then buy(close) at low.So you can profit from the rise and the fall of the prices.

Category: Basics