High Liquidity
The Forex market is the most liquid market in the world. The daily trading volume is US$ 3.2 trillion. That gives the trader an unparalleled freedom to buy or sell a position. You can exit your position at will any time you wish without barriers or limitations.
24 Hour Trading
You can trade the Forex market effectively 24 hours a day. Compare it to the stock market! At any moment during the 24 hours there will be Forex traders somewhere in the world actively selling or buying. You can respond to any breaking news immediately.
Small Margin / High Leverage
You can control a position with a 1% margin or less. It means you can buy or sell US$10 000 worth of currencies with only a US$ 100 margin deposit using leverage 1:100. It gives you the possibility to make extraordinary profits. Depending on the agreement with your broker you can get even a higher leverage, typically up to 1:400.
Commission Free Trading
The Forex brokers have no commission charges. They compensate for their services through the bid/ask spread that is typically less than 0.1% (10 points or pips).
Unrestricted Short Selling
Since you are always selling one currency and buying another one simultaneously, there is no bias to the market. It is equally easy to buy a currency pair as it is to short sell it.
Nobody Can Manipulate the Market
The immense volume of the daily Forex trade makes it practically impossible for anybody, including any central bank, to effectively manipulate the market prices.
Investors at all levels can easily access the Forex Market through the Internet. You can execute your trades instantaneously off the real time streaming prices seen on your monitor.
Tuesday, November 11, 2008
FOREX Trading Advantages
Posted by Qamar Ghauri at 12:29 PM
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