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Advantages of the Forex Market

Discussion in 'Forex Broker Discussion' started by 5starsforexltd, Aug 29, 2015.

  1. 5starsforexltd

    5starsforexltd New Member

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    Advantages of the Forex Market

    Forex, Fx, Online Trading, Trading fx, Currency Trading
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    The Forex or foreign exchange market has many advantages over other types of trading. Since it is an OTC (over-the-counter) market, the Forex market is open 24 hours a day, unlike the regular stock or commodity markets. Most investments require a significant amount of money before you can take advantage of that investment opportunity. You only need a small amount of capital to trade Forex. Everyone can enter the market with as little as $1 to trade a "micro account", which allows you to open positions of 1,000 units. One lot of 1,000 units of currency is equal to 1 contract in micro account. Each "pip" or "tick" (smallest currency rate movement up or down) is worth $0.10 profit or loss, depending on wheather you are going with the market or against it. A Forex mini account gives you control over 10,000 units of currency, where one pip is worth $1.00. While a standard account gives you control over 100,000 units of currency, and a pip here is usually worth $10.00.

    Forex is also one of the most liquid markets. When trading currencies on the spot Forex market you have full control of your capital, meaning that you can buy and sell your positions anytime during market open period. This is a definite advantage because, if you need to use your account money, it can be accessed immediately without additional commission or waiting periods. Many other types of investments require holding your money up for rather long periods of time.

    Also, in Forex, with a small amount of money, you can control bigger market positions using the leverage or margin trading. Leverage of 1:100 is common in the Fore market. It allows you to control amounts 100 times bigger than your capital, while leverage of 1:500 and 1:300 and 1:200 can be found with some offshore companies.

    Forex traders can be profitable in bullish or bearish market conditions. Stock market traders need stock prices to rise in order to take a profit, since short-selling is a subject to strict limits in stock exchanges. Forex traders can make a profit during both uptrends and downtrends. Forex trading is rightfully considered risky but with a good trading system to follow, good money management skills, and some level of self-discipline, the risks of Forex trading can be minimized considerably.

    The Forex market can be traded anytime and anywhere. As long as you have access to a computer and internet, you have the ability to trade the Forex market. An important thing to remember before jumping into trading currencies is that it is worth practicing with "paper money", or "fake money", on the demo account. Foreign Exchange Broker have demo accounts where you can download their trading platform and practice in real-time with real market data but with "virtual money". While profitable demo trading cannot guarantee your success with real money, practicing can give you a huge advantage to become better prepared when you start trading with your real, hard-earned money.

    If you want to know more about how to start trading in Forex, want to

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  2. vic84

    vic84 New Member

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    The best part i like about the market is that it can be accessed at any point of time and from anywhere.
     
  3. Sharon Higgins

    Sharon Higgins New Member

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    The biggest advantage that I feel in trading is working with OctaFX broker since Forex is already a 24/5 active market, but with them it has truly become that due to their cTrader platform for mobile, it’s not just highly upgraded and having advance technique but it is so much easier to use and due to mobile option, I am able to do this even sitting in my office without facing much trouble at all and makes me highly comfortable with things.
     
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