How To Start Trading The Forex Market? (part 3)
10 REASONS TO START TRADING FOREX!
Additional and more well informed investor and entrepreneurs are diversifying their traditional investments like stocks, bonds & commodities with foreign currency because of the following reasons:
one) FOREX is the largest financial market in the world.
With a daily trading volume of over $1.five trillion, the spot FOREX market will absorb trading sizes that dwarf the capacity of any alternative market. In fact, when put next with the $fifty billion daily market for equities or the $30 billion futures market, it becomes quickly apparent this gives you, and uncountable different FOREX traders, almost infinite trading liquidity and flexibility.
two) FOREX is a True twenty four-hour market.
The FOREX Market never sleeps. Trading positions will be entered and exited at any moment around the globe, around the clock, 5.five days a week. There’s no anticipating an opening bell as in the case of trading stocks. It’s a twenty four- hour, continuous electronic (ONLINE) currency exchange that never closes. This is terribly fascinating for you if you wish to trade on a half-time basis, as a result of you’ll be able to choose when you wish to trade: morning, noon or night.
three) There’s never a Bear Market in FOREX.
You’ll have access to a seamless exchange of currencies. Currencies trade in “pairs” (for instance, US greenback vs. JPY (YEN) or US greenback vs. CHF (Swiss franc), one side of every currency pair (for example, USD/CHF) is continually moving in relation to the other. So, when you get a specific currency, you’re actually simultaneously selling the other currency in that specific pair. As the market moves, one in every of the currencies can increase in value versus the other. Of course, it is up to you to choose the correct currency to be long ( you acquire) or short( you sold).
4) High Leverage - up to 400:1 Leverage.
You’re permitted to trade foreign currencies on a highly leveraged basis - up to 400 times your investment with Fenix Capital Management, LLC and with another brokers.
Commonplace one hundred,000- US$ currency tons can be traded with as little as 0.twenty five% margin, or $250.
Mini FX accounts are permitted to trade with just 0.25% margin, that means, just $25 allows you to control a 10,000-unit currency position.
Futures traders, who are acquainted with margin necessities generally equal to 5-seven%-eight% of the contract price, will immediately recognize {that the} FOREX market provides abundant greater leverage, and for stock traders, who must post a minimum of fifty% margin, there’s no comparison. If you’re wanting for an economical use of trading , trade the Forex Market.
5) Value Movements may be Highly Predictable.
Currency prices in the FX market typically repeat themselves in comparatively predictable cycles, creating trends. The sturdy trends that foreign currencies develop are a significant advantage for traders who use the “technical” methods and strategies.
In contrast to stocks, currencies have the tendency to develop strong trends. Over 80% of volume is speculative in nature and, as a result, the market frequently overshoots and then corrects itself. As a technically-trained trader, you’ll simply determine new trends and breakouts, to enter and exit positions.
half dozen) YOU do not pay commissions or fees to trade FOREX
After you trade FOREX, through Fenix Capital Management LLC (FCM) you can do it totally FREE of commissions and fees , irrespective of your account size.
Fenix Capital Management LLC, requires a very low minimum amount to open a brokerage account, solely US$ 200 and they do not charge commissions or fees to trade or to keep up an account, regardless of your account balance or trading volume.
seven) YOU don’t must pay trading fees or exchange fees.
There are none of the same old fees, that futures and equity traders are conversant in pay:
NO exchange or clearing fees,
NO NFA or SEC fees.
Because currencies trade over-the-counter (OTC), via a world electronic network, in FOREX, what you see on your trading screen, is what you get, allowing you to form quick decisions on your trades while not having to worry or account for fees that may have an effect on your profit/loss or slippage.
In the equity and commodity markets, you need to pay each a commission and exchange fees. The over-the-counter structure of the FX market eliminates exchange and clearing fees, which in flip lowers transaction costs.
HOW to Forex brokers create money if they do not charge commissions?
Like all traded monetary products, over-the-counter currency trading involves a bid/ask unfold, that represents the prices at which your counterpart is willing to trade. Your broker will receive a half of this bid/raise spread.
As a result of the currency market offers spherical-the-clock liquidity, you receive tight, competitive spreads each intra-day and night. Stock traders can be additional vulnerable to liquidity risk and typically receive wider trading spreads, especially during after-hours trading.
nine) Market Transparency.
Market transparency is very desired in any trading environment. The bigger the market transparency, the a lot of efficient the market becomes. Not like different markets where transparency is compromised (like in the numerous recent scandals), FOREX markets are highly transparent (i.e., analyzing countries, and having access to real-time research / news, is easier than analyzing corporations).
As a result of of this transparency, as an FX trader, you’ll be ready to apply risk management methods in accordance to your fundamental and technical indicators.
ten) Instantaneous Order Execution
The FX market offers the very best level of market transparency out of all the financial markets. As a result of of this, order execution and fill confirmation usually occur in just one-a pair of seconds.
In Forex, order execution is all-electronic and as a result of you will be trading via an Net-primarily based platform, instantaneous execution is routine.
There are not any exchanges, no ancient open-outcry pits, no floor brokers, and consequently, no delays.( can be continued )
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