Are you starting to feel like learning forex trading is not your cup of tea? Not so fast. There are many reasons why today’s aggressive and successful money market investors are hooked on forex trading. Following are five them, which might just encourage you to learn trading.
First, like your local convenience store, the forex market never closes. Most of the trading floors in different countries only operate for a minimum of five to a maximum of eight hours every day from Monday to Friday. But because of the dynamic nature of foreign currency, the forex market at best payout casinos online has to be open 24/7 so traders can play their forex portfolio based on global economic trends as they happen, and also choose their most convenient time for trading—whether it be morning, noon, afternoon, evening, midnight or dawn.
Second, forex trading costs lower than trading in other markets. For example, in the equities market, traders are required to pay a spread, on top of the commission that’s due the broker, which can be anywhere from $20 to $100. These are not required in forex trading because the process is lodged online, forex trading being a highly electronic and automated market. As such, forex traders need only to pay the spread. The fact that the forex market is a liquid market adds to its attractiveness.
Third, forex trading allows trading on high leverage. Let us take the equities market again as an example. A professional equities day trader typically trade on a leverage of approximately ten times his capital. On the contrary, a forex market trader can trade at about 100 to 200 times his capital. There is, however, a disadvantage that comes with high-leverage trading: while it can potentially result in extremely high profit, it can also cause equally high losses.
Fourth, the forex trading market enjoys limited slippage. The electronic nature of forex trading makes it possible for traders from all over the world to exchange different currencies real time, at real-time prices based on real-time quotes. The significance of this lies in the fact that it is almost always the case that the price you are quoted at any given time is the actual price that you will pay if you decide to buy. In contrast, other markets are characterized by high slippage.
Fifth, in forex trading, you can profit both from the rise or fall of the markets. If you know how to play your cards, and you play them well, forex trading can generate income rates that other markets cannot. For example,machine à sous en ligne equity markets move with the rise and fall of trends. In contrast, the forex market only depends on the movement of the two trading currencies, such that if one currency is down, then the other will necessarily be up. As such, any trader can profit from the rise or fall of the market, with a little foresight and strategy.