Benefits of trading
The Currency or the Forex market is one of the largest over the counter exchange markets on the planet. It is due to its sheer size and the amount of transactions taking place on it, that it is regarded as a place where you can make your dreams of getting rich quick come true. The marketplace is basically a online exchange where several thousand traders are pitted against one and another, buying and selling currency pairs, in a bid to make it big.
The currency market is one place where you have the opportunity of making millions, irrespective of the fact whether you will find the capacity to make a large enough investment or otherwise. So what are the benefits of trading currency rather than futures, CFDs, gold or oil? Let us find out.
One of the biggest advantages of trading in forex is that you do not have to make large upfront payments to secure positions in the market. You have the option of using leverage. This means that you only need to put a small fraction of the amount which you are going to invest into your trading account before investing and the rest is levered for you.
Another big advantage of trading in the currency market is that it is open Twenty-four hours a day 5 days a week. This means that unlike the stock exchange you do not need to take off work to trade on the market.
One benefit of trading in the currency market is that it is highly liquid. By liquid we mean that there are large number of investors in the market hence there would not any problems with you not being able to execute your trade.
Another benefit is the fact that unlike the stock market you do not need to bother with commission structures, hidden fees or any other charges. The only way forex brokers make money is through the bid and get spread.
80.5% of retail CFD accounts lose money.
One big advantage is that nobody has the kind of capital that’s needed to sway the market in one direction or the other. A major problem using the stock market is that big investors can move the marketplace to their advantage; this is not the situation with forex trading. This is due to the fact the forex market is several times bigger than any stock market in the world.
The speed of transaction is another area where the forex market scores within the stock market. In case of the currencies market you can get your trades executed within seconds. This is possible due to the availability of a large number of buyers and sellers which are online across the globe at all times.
These are some of the major advantages of trading in the currency. Though currency trading is a lucrative option to earn money quickly, it has its own risks and pitfalls. And these are the things that one needs to be aware about before making his or her mark in the currency market. The currency market is huge and once you have understood how to mitigate your risks, it is all about gathering money on your own.