Why Forex Trading: Advantages of Forex Trading
Why Forex Trading: Advantages of Forex Trading
There are many benefits and advantages of forex trading. Here are just a few reasons why many people are opting for this market:
No commissions
No compensation expenses, no exchange fees, no government fees, no agency fees. Most retail brokers are compensated for their services through something called the "buyer / seller."
Without intermediaries
Currency trading counts out the middlemen, and allows you to trade directly with the market responsible for pricing in a currency pair.
No fixed batch size
In futures markets, lot contracts or sizes determined by exchanges. A standard size contract for silver futures is 5000 ounces. In the spot forex, your own target, or to determine the size of the position. This allows investors to participate with accounts as small as $ 25 (we'll explain later why a $ 25 account is a bad idea).
Low transaction fees
The sale transaction (the buy / sell) is usually less than 0.1% under normal market conditions. In the larger dealerships, the diffusion was as low as 0.07% quantities. Of course, this depends on the lever, and everything will be explained later.
A 24-hour market
Do not wait for the opening bell. Since opening Monday morning in Australia for the afternoon near New York, the forex market never sleeps. This is ideal for those who want to trade on a part-time basis, because you can choose when you want to trade: morning, afternoon, night, during breakfast, or in your dream.
No one can corner the market
The foreign exchange market is so large and has so many participants that no entity (not even a central bank or the mighty Chuck Norris himself) can control the market price for an extended period of time.
advantage
In exchange transactions, a small deposit may control a much larger total contract value. The rules of the game give the operator the ability to make good profits while keeping venture capital to a minimum.
For example, a broker that offers 50-to-1 advantage, which means that a $ 50 margin deposit would allow an trader to buy or sell $ 2500 worth of currencies. Also with $ 500 dollars, one can trade with $ 25,000 more. While this is all the sauce, remember that advantage is a double edged sword. Without proper risk wired, this high degree of advantage can lead to large losses and gains.
High liquidity.
Since the forex market is so large, it is also very liquid. This is an advantage as it means that under normal market conditions, with a click of the mouse you can buy and sell directly at will, as it is usually someone willing to take the market on the other side of your trade will be. You are never "stuck" in a trade. You can even make your trading platform online to automatically close your position when you reach the desired profit level (a limited order), and / or close an trade if a trade goes against you (a stop loss order) .
accessibility
You might think that Starting as a coin trader would cost a lot of money. The fact is, compared to trading stocks, options or futures do not. Forex brokers online offer "mini" and "micro" holding accounts, some with a minimum deposit account of $ 25.
We are not saying that you should open an account with the bare minimum, but it makes the Forex trading more accessible to the average person who does not have a lot of start up investment capital.
Free stuff everywhere!
Most online forex brokers offer "demo" accounts to practice trading and build their skills along with real-time forex news and charting services.
And guess what?! They are all free!
Demo accounts are very benefical resources for those who are "financial problems" and want to perfect their trading skills with "gambling money" to open a real account and risk real money.
Now that you know the advantages of the forex market, how it compares to the show!
Why Trade Forex: Forex Vs. Actions
There are approximately 2,800 shares listed on the New York Stock Exchange. Another 3,100 are listed on the Nasdaq. How will the market? Do you have time to keep up with what many companies?
In the spot currency market, dozens of currencies are not traded, but the majority of players in the market trading the four major pairs. Your four pairs much easier to keep an eye on you thousands of shares?
Look at Mr. Forex. It is so safe and attractive. Mr. Stock has no chance!
That is just one of the many advantages of the forex market in the stock markets. Here are some:
24 hours market
The forex market is a transparent 24-hour market. Most brokers are open from Sunday at 4:00 am ET to Friday at 4:00 pm EST, customer service is usually available 24/7. With the ability to trade in the Asian, European and European market hours of the United States, you can customize your own trading hours.
Minimum or no commissions
Most forex brokers do not charge a trading commission or additional costs of forex trading online or by phone. In combination with tight, coherent and fully transparent spread, the costs of Forex trading are lower than any other market. Most brokers are compensated for their services through buying / selling.
Instant execution of market orders
Its operations are carried out immediately under normal market conditions. In these circumstances, usually visible in the performance of your market order price is the price you get. You are able to directly run real-time transmission prices (Yeeeaah Oh! Great time!).
Keep in mind that many brokers only guarantee stop, limit and access orders, under normal market conditions. Trading during a massive alien invasion from outer space would not do it in "normal market conditions" circumstances fall. Fills are immediately most of the time, but under extremely volatile market conditions, as well as during Mars attacks, execution of orders may experience delays.
Short Sales and Without Uptick
Unlike the stock market, there is no restriction on short selling in the currency market. There are trading opportunities in the currency market, regardless of whether a trader is long or short, or how the market is moving. Since forex trading always involves buying one currency and selling another, there is no structural preference for the market. So you always have the same access to trade in an up or down market.
Without intermediaries
Centralized exchanges provide many advantages to the merchant. One of the problems with an exchange center, the involvement of intermediaries. Each party between the merchant and the buyer or seller of the security or negotiated instrument will cost you money. The cost can be in time or in installments.
Currency trading to eat, on the other hand, decentralized, so that quotes can vary from different agents of change. The competition between them is so strong that you can almost always be sure that you get the best deals. Forex traders get faster access and low-cost costs.
Buy / sell plan do not control the market.
How many times have you heard that "background A" sold "X" or the purchase of "Z"? The stock market is very susceptible to large purchases of funds and sale.
In cash transactions, the size of the foreign exchange market is the probability of a fund or bank controlling a very small currency. Banks, hedge funds, governments, retail currency conversion houses and large individuals net worth are just some of the participants in the spot currency market, where liquidity is unprecedented.
Analysts and brokers are less likely to influence the market
Have you watched television lately? Heard of a certain Web stock and an analyst of a prestigious brokerage firm accused of maintaining its recommendations, such as "buy", when was the rapid decline? It is the nature of these relationships. No matter what the government does to intervene and discourage this type of activity, we have not heard the last word.
IPOs are big business for both public housing and brokerage firms. Relationships are mutually beneficial and analysts work for brokerage firms, which allow traders and clients. That catch-22 will never disappear.
Exchange rate as the main market, generates billions in revenue for banks in the world and is a necessity in global markets. Analysts in foreign currencies have little effect on the exchange rate; Which has just analyzed the foreign exchange market.
In the battle between the currency in relation to stocks, the dash between the Lord looks like shares change and Mr. shows a strong win by Mr. Coin! It will do 2-0
Why Trade Forex: Forex Vs. futures
The forex market also has a lot of advantages over the futures market, similar to its advantages with respect to equities. But wait, there's more ... so much more!
liquidity
In the foreign exchange market, $ 5300000000000 is traded every day, making it the largest and most liquid market in the world. This market can absorb the volume of transactions and transactions of the sizes that the capacity of any other dwarf market. The futures market trades a measly $ 30 billion a day. Thirty billion? The peanuts!
Futures markets can not compete with relatively limited liquidity. The foreign exchange market is always liquid, which means positions can be liquidated and cease executed orders with little or no slip, except in extremely volatile market conditions.
24 hours market
At 5:00 pm EST Sunday, trading begins when markets open in Sydney. At 7:00 pm EST the Tokyo market opens, followed by London at 3:00 am EST. And, finally, New York opens at 08:00 ET and closes at 16:00 ET. Before trading closed in New York, Sydney market opens again - it is a transparent market 24 hours!
As a trader, this allows you to react to favorable or unfavorable news by operating immediately. If the important data comes from the UK and Japan, while the US futures market is closed, opening the next day can be a wild ride. There are overnight markets in futures contracts, while improving liquidity, which are being traded thin compared to the spot currency market.
Minimum or no commissions
Electronic communications brokers increasingly popular and frequent in recent years, there is a possibility that a broker has to pay commissions. But in fact, commissions are peanuts compared to what you pay in the futures market. The competition between spot currency brokers is so fierce that they are likely to be the best quotes and at a low cost.
Price guarantee
In exchange operations, rapid execution and certainty in prices under normal market conditions is obtained. Conversely, futures and stock markets do not offer certainty in prices or the execution of instant trading. Even with the advent of e-commerce and limited guarantees of execution speed, futures fill prices and actions on market orders are far from safe. Brokerage prices often represent the latest operation, not necessarily the price at which the contract will be filled.
Guaranteed limited risk
Traders should position limits for the purpose of risk management. This number is set in relation to money on behalf of a merchant. Risk is minimized in the spot Forex market because the online trading platform capabilities will automatically generate a margin call if the amount exceeds the required commercial capital margin available in your account.
During normal market conditions, all open positions will be closed immediately (when conditions quickly market, your position could be blocked from your stop loss level).
In the futures market, your position could be liquidated at a loss greater than what you had in your account, and you will be responsible for any account deficits. That's bullshit.
Judging by the front of the Forex Board futures, Mr. Forex looks unbeatable! Now meet the winners of trading in the currency market.
There are many benefits and advantages of forex trading. Here are just a few reasons why many people are opting for this market:
No commissions
No compensation expenses, no exchange fees, no government fees, no agency fees. Most retail brokers are compensated for their services through something called the "buyer / seller."
Without intermediaries
Currency trading counts out the middlemen, and allows you to trade directly with the market responsible for pricing in a currency pair.
No fixed batch size
In futures markets, lot contracts or sizes determined by exchanges. A standard size contract for silver futures is 5000 ounces. In the spot forex, your own target, or to determine the size of the position. This allows investors to participate with accounts as small as $ 25 (we'll explain later why a $ 25 account is a bad idea).
Low transaction fees
The sale transaction (the buy / sell) is usually less than 0.1% under normal market conditions. In the larger dealerships, the diffusion was as low as 0.07% quantities. Of course, this depends on the lever, and everything will be explained later.
A 24-hour market
Do not wait for the opening bell. Since opening Monday morning in Australia for the afternoon near New York, the forex market never sleeps. This is ideal for those who want to trade on a part-time basis, because you can choose when you want to trade: morning, afternoon, night, during breakfast, or in your dream.
No one can corner the market
The foreign exchange market is so large and has so many participants that no entity (not even a central bank or the mighty Chuck Norris himself) can control the market price for an extended period of time.
advantage
In exchange transactions, a small deposit may control a much larger total contract value. The rules of the game give the operator the ability to make good profits while keeping venture capital to a minimum.
For example, a broker that offers 50-to-1 advantage, which means that a $ 50 margin deposit would allow an trader to buy or sell $ 2500 worth of currencies. Also with $ 500 dollars, one can trade with $ 25,000 more. While this is all the sauce, remember that advantage is a double edged sword. Without proper risk wired, this high degree of advantage can lead to large losses and gains.
High liquidity.
Since the forex market is so large, it is also very liquid. This is an advantage as it means that under normal market conditions, with a click of the mouse you can buy and sell directly at will, as it is usually someone willing to take the market on the other side of your trade will be. You are never "stuck" in a trade. You can even make your trading platform online to automatically close your position when you reach the desired profit level (a limited order), and / or close an trade if a trade goes against you (a stop loss order) .
accessibility
You might think that Starting as a coin trader would cost a lot of money. The fact is, compared to trading stocks, options or futures do not. Forex brokers online offer "mini" and "micro" holding accounts, some with a minimum deposit account of $ 25.
We are not saying that you should open an account with the bare minimum, but it makes the Forex trading more accessible to the average person who does not have a lot of start up investment capital.
Free stuff everywhere!
Most online forex brokers offer "demo" accounts to practice trading and build their skills along with real-time forex news and charting services.
And guess what?! They are all free!
Demo accounts are very benefical resources for those who are "financial problems" and want to perfect their trading skills with "gambling money" to open a real account and risk real money.
Now that you know the advantages of the forex market, how it compares to the show!
Why Trade Forex: Forex Vs. Actions
There are approximately 2,800 shares listed on the New York Stock Exchange. Another 3,100 are listed on the Nasdaq. How will the market? Do you have time to keep up with what many companies?
In the spot currency market, dozens of currencies are not traded, but the majority of players in the market trading the four major pairs. Your four pairs much easier to keep an eye on you thousands of shares?
Look at Mr. Forex. It is so safe and attractive. Mr. Stock has no chance!
That is just one of the many advantages of the forex market in the stock markets. Here are some:
24 hours market
The forex market is a transparent 24-hour market. Most brokers are open from Sunday at 4:00 am ET to Friday at 4:00 pm EST, customer service is usually available 24/7. With the ability to trade in the Asian, European and European market hours of the United States, you can customize your own trading hours.
Minimum or no commissions
Most forex brokers do not charge a trading commission or additional costs of forex trading online or by phone. In combination with tight, coherent and fully transparent spread, the costs of Forex trading are lower than any other market. Most brokers are compensated for their services through buying / selling.
Instant execution of market orders
Its operations are carried out immediately under normal market conditions. In these circumstances, usually visible in the performance of your market order price is the price you get. You are able to directly run real-time transmission prices (Yeeeaah Oh! Great time!).
Keep in mind that many brokers only guarantee stop, limit and access orders, under normal market conditions. Trading during a massive alien invasion from outer space would not do it in "normal market conditions" circumstances fall. Fills are immediately most of the time, but under extremely volatile market conditions, as well as during Mars attacks, execution of orders may experience delays.
Short Sales and Without Uptick
Unlike the stock market, there is no restriction on short selling in the currency market. There are trading opportunities in the currency market, regardless of whether a trader is long or short, or how the market is moving. Since forex trading always involves buying one currency and selling another, there is no structural preference for the market. So you always have the same access to trade in an up or down market.
Without intermediaries
Centralized exchanges provide many advantages to the merchant. One of the problems with an exchange center, the involvement of intermediaries. Each party between the merchant and the buyer or seller of the security or negotiated instrument will cost you money. The cost can be in time or in installments.
Currency trading to eat, on the other hand, decentralized, so that quotes can vary from different agents of change. The competition between them is so strong that you can almost always be sure that you get the best deals. Forex traders get faster access and low-cost costs.
Buy / sell plan do not control the market.
How many times have you heard that "background A" sold "X" or the purchase of "Z"? The stock market is very susceptible to large purchases of funds and sale.
In cash transactions, the size of the foreign exchange market is the probability of a fund or bank controlling a very small currency. Banks, hedge funds, governments, retail currency conversion houses and large individuals net worth are just some of the participants in the spot currency market, where liquidity is unprecedented.
Analysts and brokers are less likely to influence the market
Have you watched television lately? Heard of a certain Web stock and an analyst of a prestigious brokerage firm accused of maintaining its recommendations, such as "buy", when was the rapid decline? It is the nature of these relationships. No matter what the government does to intervene and discourage this type of activity, we have not heard the last word.
IPOs are big business for both public housing and brokerage firms. Relationships are mutually beneficial and analysts work for brokerage firms, which allow traders and clients. That catch-22 will never disappear.
Exchange rate as the main market, generates billions in revenue for banks in the world and is a necessity in global markets. Analysts in foreign currencies have little effect on the exchange rate; Which has just analyzed the foreign exchange market.
In the battle between the currency in relation to stocks, the dash between the Lord looks like shares change and Mr. shows a strong win by Mr. Coin! It will do 2-0
Why Trade Forex: Forex Vs. futures
The forex market also has a lot of advantages over the futures market, similar to its advantages with respect to equities. But wait, there's more ... so much more!
liquidity
In the foreign exchange market, $ 5300000000000 is traded every day, making it the largest and most liquid market in the world. This market can absorb the volume of transactions and transactions of the sizes that the capacity of any other dwarf market. The futures market trades a measly $ 30 billion a day. Thirty billion? The peanuts!
Futures markets can not compete with relatively limited liquidity. The foreign exchange market is always liquid, which means positions can be liquidated and cease executed orders with little or no slip, except in extremely volatile market conditions.
24 hours market
At 5:00 pm EST Sunday, trading begins when markets open in Sydney. At 7:00 pm EST the Tokyo market opens, followed by London at 3:00 am EST. And, finally, New York opens at 08:00 ET and closes at 16:00 ET. Before trading closed in New York, Sydney market opens again - it is a transparent market 24 hours!
As a trader, this allows you to react to favorable or unfavorable news by operating immediately. If the important data comes from the UK and Japan, while the US futures market is closed, opening the next day can be a wild ride. There are overnight markets in futures contracts, while improving liquidity, which are being traded thin compared to the spot currency market.
Minimum or no commissions
Electronic communications brokers increasingly popular and frequent in recent years, there is a possibility that a broker has to pay commissions. But in fact, commissions are peanuts compared to what you pay in the futures market. The competition between spot currency brokers is so fierce that they are likely to be the best quotes and at a low cost.
Price guarantee
In exchange operations, rapid execution and certainty in prices under normal market conditions is obtained. Conversely, futures and stock markets do not offer certainty in prices or the execution of instant trading. Even with the advent of e-commerce and limited guarantees of execution speed, futures fill prices and actions on market orders are far from safe. Brokerage prices often represent the latest operation, not necessarily the price at which the contract will be filled.
Guaranteed limited risk
Traders should position limits for the purpose of risk management. This number is set in relation to money on behalf of a merchant. Risk is minimized in the spot Forex market because the online trading platform capabilities will automatically generate a margin call if the amount exceeds the required commercial capital margin available in your account.
During normal market conditions, all open positions will be closed immediately (when conditions quickly market, your position could be blocked from your stop loss level).
In the futures market, your position could be liquidated at a loss greater than what you had in your account, and you will be responsible for any account deficits. That's bullshit.
Judging by the front of the Forex Board futures, Mr. Forex looks unbeatable! Now meet the winners of trading in the currency market.
