Friday, February 01, 2013

ADVANTAGES OF TRADING FOREX



There are many benefits in trading Forex in relation to other financial products you may consider for financial freedom.  Some of the benefits are:
Market Transparency: You are your own broker and decide on when to buy or sell a currency pair at your own discretion unlike the stock market where you have to employ the services of a stockbroker.  There are instances in the stock market where the broker may use your funds fraudulently.
Commission-Free Trades : No commission charges on self-traded accounts. All Limits, Stops, Entry and Exit orders are commission-free. Traders pay a spread between the bid and ask prices only.
24-Hour Market: The Forex market does not sleep so you have the luxury of trading anytime of the day or night at any location so long as you have internet access.  Unlike traditional investments, Forex offers continuous trading day or night allowing investors to profit even at times when other investment markets are closed. Normal operation hours are Sunday 5 pm through Friday 4 pm Eastern Standard Time (EST).
High Liquidity: The Forex market has a daily turnover of about $1.9 trillion; this is more than that of the New York, London and Tokyo stock exchanges combined.  This gives the ability to enter and exit the market freely at a desired price. A powerful attraction to any investor as it suggests the freedom to open or close a position at will.
High Leverage: Traders can start with very small investment amount of as low as $50. This is because a trader can control up to 400 times investment capital.  Leverage ratios range from 40– 400.  For participants with small investment capital, this can mean huge potential gains. Example: USD $1,000 investment would control $100,000 (at 100 to 1 leverage) and $400,000 (at 400 to 1 leverage). Please note that risk increases proportionately with the amount of leverage used.
Two-Way Profitability: Unlike most other businesses, Forex guarantees a two-way profitability irrespective of where the market is going.  It gives the ability to profit in both Bullish and Bearish conditions. The relative strength and direction of an economy is irrelevant, even in times of recession profit is still possible.
Real-Time Account Info: Execute orders and monitor positions directly on the chart.  Full access to trade capabilities all in one window.  The live streaming charts allow up-to-the-minute access to trade activities and reports.  Continuous connection to market movements allows investors immediate feedback, to monitor both profitability and control risk.

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