Why You Should Consider Trading Currencies
In the last several years, there has been a rise in the number of individuals who trade currencies. The likely reason for this is that trading in the Forex market offers many benefits. Why trade currencies? This market is open 24-hours a day, 5+ days a week-Forex is a global financial market and trading will keep going for as long as there is an open market somewhere in the world. In each time zone around the world, Forex markets are open from 8am to 4pm. As some markets close for the night, others open elsewhere.
currencies at any moment, letting you raise your income without resigning from your day job. The market is extremely liquid - The currency market is the biggest and most liquid of financial markets, with daily activity often going above $4 trillion US dollars each day. Due to its outstanding liquidity, it is not difficult to get in and out of trades at any time, even with sizeable orders. Click here to learn more about Forex trading. You can make money from both rising and falling prices - One great advantage of trading in the forex market is that you can earn from both bullish and declining markets. If you believe a currency pair is going to increase in value, you can take a long position. If you believe it will decline in value, you can sell it. You donâ€™t need to be rich to start trading - Currency trading requires a considerably lower initial investment compared to other financial markets. You IC Markets
could open an account with only $300 based on the amount of leverage provided by the broker. Sizeable leverage is available to Forex traders because of the marketâ€™s incredible liquidity. Leverage allows you to trade more money on the market than what is in your account, which means you can profit greatly from even the smallest price movements. Keep in mind, however, that leverage can increase not only your profits but also losses, so make sure to use it prudently. Transaction fees are minimal - Transaction costs diminish returns as well as the amount of capital you can otherwise invest. In Forex trading, the only cost traders incur in every transaction is the difference between the buy and sell price of each currency pair. Few currency pairs to select from - It is easier to specialize in Forex than in other financial markets. For instance, when trading stocks, you will have in excess of 4,000 stocks to choose from. In Forex, most trades are done on major currencies which include the USD, EUR, and JPY. Even when you include every currency in the world, currency pairs are still outnumbered by stocks.