Advantages Of Forex Market

Forex market is one amongst the largest financial markets of the world. Basically, this market deals in real time exchange of currencies of different countries. It has a greater number of buyers and sellers, than in any other financial market of the world. Forex is the only financial market, which is open 24 hours a day, 5.5 days a week, across the globe. This market is one of the most popular speculation markets, and is well known for its huge volume, superior liquidity, as well as the steady trading prospects. There are many advantages of forex market. By trading in this market you can make a large amount of money in a short period of time. One should be well aware of the benefits of forex market so as to earn profitable amount of money while trading.

Some of the great advantages of forex market are given below:

High leverage

The first unique feature of forex market is its high levels of leverage. Starting from a minimum of 100:1, this market offers a great amount of leverage, which implies that you can produce large profit by investing small amounts of deposits. This is one of the greatest advantages of forex trading.

No commission

Another great forex market benefits is that forex trading transactions actually have no commissions apart from the natural market difference i.e. spread. Spread is the difference between the prices of a supply and demand. The retail transaction cost is typically less than 0.1% under normal market conditions. At larger dealers, the spread could be less than 5 pips, and may widen considerably in fast moving markets.

24 hour market

Forex market operates 24 hours five days a week. This flexible trading hour gives many traders a great opportunity to trade in the market in their own desirable timings. It is also beneficial for those traders who want to trade on a part time basis since they could select their own timing to trade whether it’s morning, noon or night. Yet this is one of the other benefits of forex market.

High liquidity

One of the other unique advantages of forex market also includes its superior liquidity as compare to other markets of the world. Forex trading stop orders could be carried out more simply and also with less slippage. The forex market is open 24 hours a day and 5 days a week. This makes forex trading more liquid and permits forex traders to take benefit of trading opportunities as they happen rather than waiting for the market to open the next day.

Profit potential in both rising & falling markets

Currencies in forex market are always quoted in pairs. This enables you to find great chance to make money in anytime, regardless of the fall or rise period of one single country currency. In every open forex position, an investor is long in one currency and shorts the other. A short position is one in which the trader sells a currency in anticipation that it will depreciate. This means that potential exists in a rising as well as a falling. However, the ability to sell currencies without any limitations is one of the distinct forex market benefits.

Get the above advantages while trading in the forex market