Forex Market Advantages
- What Is Forex Currency Trading
- Forex Market Advantages
- Forex Myths
- Forex Market Makers
- What is Margin Trading ?
Let us consider Forex market advantages - the greatest financial market of the world with more than 4 billion dollars daily turnover.
- Market liquidity
- Market Availability
- Trade Management
- Trade cost
- Order Execution
- Currency Trend
- Margin size
Forex Market Liquidity
Referring to the Liquidity of the Forex Market, first of all, let us consider that. Forex is a market where enormous money supply is operated. The liquidity of the market is, indeed a rather powerful feature which makes possible opening and closing different trading positions using the current market quotations. Strange it may seem, however, the higher the liquidity the more are the possibilities of entering and exiting the market with different volume of money.
Promptness of Forex Market
Forex Market Promptness indicates the effective management of the working hours of the market. While the market operates 24 hours 5 days in the week, the market participant can react to any event in the market with no delay.
One of the main benefits of trading Forex is that Forex Markets gives the opportunity to trade 24 hours in a day, anywhere in the world. The only necessary items to keep connation with the Market are the internet connection and a computer, which can also be replaced with a pocket PC, PDA or a mobile phone.
With a flexible trade management possibility a trade position can be opened even prior to the trade time. This feature enables the investor to set the trade preferences in advance.
The Forex commission is formed through the natural Spread of the buy/sell price differences.
Forex assures order execution with the existing market prices no matter how big or small the investors trade volume is.
All the currencies have shown tendency to fluctuate in a particular direction. This feature of the currency trend enables fluctuations in Forex Market.
The size of the margin is formed between the client and the broker company (bank) that grants the investor access to the Forex Market. The size of the margin provided by the company may vary from bank to bank, usually it is 1:100. This enables the investor to trade the volume up to 100.000 depositing only the 1% of it that is $1000. In fact this margin level which may seem insignificant, on the other hand providing significant leverage to trade fast changing currencies, which on its turn makes the Forex market greatly profitable and at the same time rather risky. However the size of the leverage is a always the investors choice, which can be 1:5 as well.