Why Forex? Advantages of Forex

Saturday, August 7, 2010


Why Forex? Advantages of Forex

Highest Liquidity
There is always buyer and seller in Forex market. The Forex market absorbs trading volumes and per trade size which dwarfs the capacity of any other market. On the simplest level, liquidity is a powerful attraction to any investor as it suggest the freedom to enter or exit the market at any time. Forex traders benefit from the ability to respond to breaking news immediately. There is no other market or investments that you can ever make an exit exactly at the time you wish to.

24 Hour Trading
The Forex market is open 24 hours daily. When Asia market is close, the European market start follows by the USA market and continue by Asia market again the next day. Thus, this allows Forex traders to take positions regardless of the hour and locations.

Profit on Bulls and Bears
"Buy low sell high", this is what every investor knows and practising in whatever market. One of the most exciting advantages of Forex trading is the ability to generate profits whether in the bull or bear condition. In the Forex market, apart form buy low sell high, Forex traders can always sell high and then buy back at lower price to generate profit.

High Leverage
In Forex trading, a small margin deposit can control a much larger total contract value. 200 to 1 leverage enable Forex traders to buy or sell $100,000 worth of currencies with $500 margin deposit. It gives Forex traders the ability to make extraordinary profit.

No Commissions or fees
Trading Forex has much lower transaction costs than other investment products, a very important point for active traders.

Free Resource for Forex Trading
There are lot's of online Forex Brokers offer free Demo accounts for potential Forex traders to practice trading. Just register and start demo trading to get feel on Forex trading. Besides that, there's also tonnes of free Forex news made available online, along with Forex charts and other resources. Just make sure you have browse thought all other pages in this site to learn on the essential Forex websites you have to visit for Forex trading.

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