forex

Trading the 24hr online Forex market has become very popular over the last 2 or 3 years. Why is it that traders around the world see the Forex market as a rags to riches chance? We will try to answer this question in this article. We will look at the differences in the Forex markets, the stocks market and the futures market.
Forex benefits listed below:

Superior liquidity.
Liquidity is what really makes the Forex market different from other markets. The Forex market is by far the most liquid money market in the world with nearly 2 trillion dollars traded everyday. This ensures price stability and better trade execution. Alowing online Forex traders easy options when looking to open and close a trade. Also such a tremendous volume makes it hard to manipulate the market in an extended manner.

24hr Market.
This one is also one of the great things of trading Forex. It is an around the click market, the market opens on Sunday at 3:00 pm EST when New Zealand begins operations, and closes on Friday at 5:00 pm EST when San Francisco terminates operations. There are transactions in practically every time zone, letting active online traders to pick what time to trade.

Low minimum investment.
Requires less money to start than other markets. The initial investment could go as low as $500 USD, changing broker to broker. This is a fantasic advantage since Forex traders are able to keeps risk to a minimum.

Leverage trading.
In 3 words 'great buying power'. Some Forex brokers offer leverage up to 400:1, allowing traders to have only 0.25% in edge of the total investment. For instance, a trader using 100:1 means that to have an US$100,000 position, only US$1,000 are needed on margin to be able to open that position.

Low Transaction costs.
Commission free trading. The only cost traders incur in any transaction is the spread (difference of the buy sell price). This spread could be as low as 1 pip (the minimum increment in any currency pair) in some pairs.

Expert trading.
The liquidity of the market allows us to focus on just a few instruments (or currency pairs) as our main investments (85% of all trading transactions are made on the seven major currencies). Allowing us to monitor, and at the end get to know each instrument better.
Trading from anywhere.
If you are a jet-setter, you can trade from anywhere in the world just having an internet connection.