Why Trade Forex?

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Forex trading offers a lot of advantages than other financial instruments. Here are just a few reasons to consider forex trading.

The forex market is open 24 hours a day, five days a week. So you can trade anytime you want. You can trade afer school or after work. This is awesome for those who want to trade on a part-time basis, because you can choose when you want to trade: morning, noon, or night. As long as you are connected to internet, you can trade when it is convenient for you.

Unlike many other financial markets, you can trade in two directions. In several countries, it's difficult to sell short, because limitation from regulation or liquidity. In forex trading, you can trade long or short. If you think a currency will go up, buy it (LONG). If you think it will fall, sell it (SHORT). This means there is no such thing as a "bear market" in forex—you can make (or lose) money in both directions.

You don't have to pay a sales commission when you trade forex. Stock brokers charge you a commission for every trade you place–both to get into a position and to get out of one. In the currency market, commissions don’t exist. You simply pay the difference between the bid and the ask prices. So, forex trading has a very low trading cost

You don’t need to have a lot of money to start making profit in forex. In some forex brokers, you can open forex with deposit as low as $25 (although I think to trade forex with that very low amount of money is a really bad idea)

Having a huge market this size also makes it also extremely liquid. This is an advantage because it means that under normal market conditions, there will usually be someone in the market willing to take the other side of your trade. You are never “stuck” in a trade. You can easily enter or exit the market with the single mouse click.

In forex trading, a small deposit can control a much larger total trading value. This concept is called leverage. For example, a forex broker may offer 1:100 leverage, which means that a $25 dollar margin deposit would enable a trader to buy or sell $2,500 worth of currencies (25*100). While this enable trade to make more profit with less amount of capital, remember that leverage is a double-edged sword. Without proper risk management, this high degree of leverage can lead to large losses as well as profits.

While most forex trading is done in the world’s major currencies, you also have access to other currencies such as Mexican Peso (MXN), or Singaporean Dollar (SGD). If you want, forex broker also provide trading in gold, oil, futures, or other commodities such as corn, wheat, or coffee.

Most online forex brokers offer “demo” accounts to practice trading. You can use online trading software along with real time market data and chart for free. You can use forex demo account to hone your trading skill with “virtual money” before opening a real trading account and risking real money. Open free forex demo account here

Why Trade Forex?