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Sunday, April 3, 2011

Advantage of Forex Trading

Presently, the FX market is one of the largest and most liquid financial markets in the world, and includes trading between large banks, central banks, currency speculators, corporations, governments, and other institutions.
The average daily volume in the global foreign exchange and related markets is continuously growing. Traditional daily turnover was reported to be over US$3.2 trillion in April 2007 by the Bank for International Settlements.
Since then, the market has continued to grow. According to Euromoney's annual FX Poll, volumes grew a further 41% between 2007 and 2008.

The purpose of FX market is to facilitate trade and investment. The need for a foreign exchange market arises because of the presence of multifarious international currencies such as US Dollar, Pound Sterling, etc., and the need for trading in such currencies.

Although the Forex market is by far the largest and most liquid in the world, day traders have up to now focused on seeking profits in mainly stock and futures markets. This is mainly due to the restrictive nature of bank-offered Forex trading services.

Huge market

Approximately three trillion dollars are being traded everyday in Forex, making it bigger than world stocks, future markets and bonds
Low startup: For trading in Forex, one can begin with as low as 50 dollars

Volatile
It is the most unstable market of the world, which means one gets great opportunities every moment while trading

Low cost
While trading in stock, options and futures, you give commission and spread, with foreign exchange your just cost of trade is spread

No cornering
Unlike the other markets, cornering the foreign exchange market is improbable. Regardless of the total number of people trade with same robot, the profitability and efficiency will remain unharmed, which is a huge plus point

Up and down
Earnings from falling and rising prices, you do not concern the way the market goes and unlike the stock market you need not wait for up tick for shorting.

No size limit

Trade small or big, as per your choice, as Forex trading allows you to trade the way you want.

1 comment:

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