7 Main Reasons of Why Trade Forex
Forex NEVER sleeps
Perhaps the best reason of why trade Forex is laying on the fact that the FX market is always available for trading. A trade goes on from all around the globe during various countries’ business hours. Thus, you will be capable of trading major currencies any time, 24 hours a day. Because of the fact that there are no any set exchange times, this means that there is always something happening any time of the day or night.
Go short or long
Not like the other several financial markets where it could be really hard for you to sell short, there is no limitation in any shorting currencies. Whenever you think that it is going to go up, you can buy it. Whenever you think it is going to fall, you can sell it. In forex, this means that there is no such thing like a “bear market.” In this world, you can lose or make money any time.
Low trading costs
A lot of forex accounts can trade without any commission. At the same time, there are no data licenses or an expensive exchange fees. The cost of trade is a spread between the sell price and the buy price and this is always displayed and shown in your own trading screen.
Since forex is a $4 trillion market a day, and most trading focused only in a few currencies, chances are there are always several people trading. It makes it generally very easy in getting in and out of trades any time, even at large sizes.
Another good reason why trade Forex is the multiple leverage options. Since deep liquidity is always available in the forex market, you will be able to trade forex with a considerable leverage. This could let you take an advantage in even at the tiniest move in the market. In this field, leverage is considered to be a double edge sword because it can notably increase your gains as well as your losses.
During these days when this worlds becomes more global, several investors look for chances anywhere they can. Given a chance that you want an opinion and invest in a foreign country, trade forex is a very easy way for you to gain an exposure while at the same time avoiding all of the notions like financial statements and foreign securities in other languages.
Ease of entry
The last but not least reason of why trade Forex is the simplicity of this market. For several instances, this is so far the best reason for the entire explosion of interest in Forex. The blockades to entry are considered to be so much lower compared to the other traditional financial markets out there, where accounts can usually be funded through credit cards and traded or opened the same day. Anyone who wants to trade could get started in Forex market anytime.
With an average daily turnover of at least $4 trillion, forex is considered to be the most traded market in the world right now. Not like all of the other financial markets, investors could respond right away to any currency fluctuations, whenever they happen- day or night.