Saturday, February 6, 2010

What Are The Advantages of Trading Forex?

What is Forex Trading? 

Traditionally, stock markets or bond markets, most investors and traders around the world, people are only in the center. Contributes significantly to the money market, much more than other mainstream in the future, as the commodity markets, not surprisingly, the currency market is much larger than any other currency. 
1. Non-Stop Market (24 hours a day, trading on the market) 
Forex market is a 24-hour market from Sunday afternoon until Friday afternoon showed Journal Journal. Foreign exchange market, traders can determine their own time to trade. Even people who do not have time to say that the sale, service time may be interested - the market is open.Market in electronic connections, so it is difficult for buyers and sellers of physical stores.

2. High liquidity Mobility of traders, which is one of the greatest assets, possibly, the biggest advantage of the foreign exchange market. Forex market is the largest trade and financial market value of more than 40 trillion U.S. dollar a day.

3. Low transaction costs Forex market is the OTC market makers, which are directly associated with the transaction directly - and therefore do not include commissions. This means that investors have paid little or no money to intermediaries. Under normal circumstances, the retail price of the transaction is less than 0.01%.

4. Interbank Foreign exchange market with a large dealer or a commercial bank, commercial networks, and only through electronic networks and telephones. Foreign exchange market is not such as New York Stock Exchange or the London Metal Exchange, the exchange organization. 

5. There has been no easy Foreign exchange market involves a large sum of money, so it's quite all trade, business or market maker to address the difficulties of the market for a long time.
6. Unregulated Currency markets are substantially unregulated. However, market makers, merchant banks, supervision of the relevant rules and local laws and regulations.
7. Ensuring speculation and arbitrage Most market participants on the foreign exchange market is based on assumptions, and thus provides a high level of liquidity, foreign exchange transactions are available. In addition to speculation, and reinsurance and arbitration is common in foreign-exchange market. Banks, institutions, government agencies and wholesalers are often used for foreign exchange market to ensure their position in society, set up (export-based companies). Arbitration is another form of speculative traders, who trade the price difference between different currency pairs
8. High leverage Support, or "Margin Trading allows traders may be greater than another number. Forex market using leverage, which usually is a common agent offers many areas of the retailer.
9. Bulls Opportunities When shorts currency trading, he or she buys, or "long term" deal with another. This means that you always have the opportunity to remain active in the bull market.
10. Market Currency-related news and information, and it is easy to obtain the foreign exchange market investors with the various online and offline sources.

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