What is it that makes FOREX trading so sought-after?
You can trade anywhere. From your dining room table, your garage, bedroom or the closest Starbucks coffee shop (most of them have a wireless Internet connections).
If you like to travel, bring your laptop along and you can trade FOREX anyplace around the globe where it has the Internet connection.
If you are looking to begin trading on the Forex Market nobody is asking you for a certificate or a license issued by a formal authority. an evidence of the number of hours you’ve spent studying on the Foreign Exchange Market and/or Banking Industry.
FOREX Trading is economical and start-up costs are low!
You have the option of opening an account for trading Forex for as little as US200 dollars with the majority of brokerage companies.
The major benefits of trading on the Spot Market in the FX Spot Market are:
- There are no commissions, or fees!
- You can trade 24 hours a day!
- You can exchange up to 400:1 leverage !
- You can stream for free live price quotes that can be executed and charts!
- It is essential to understand the distinctions of the cash FOREX (SPOT FX) and currency futures.
In the case of currency futures, the size of the contract is fixed.
Through FOREX (SPOT FX) you can make trades electronically any amount you want up to $10 million USD.
The market will close at the end of business hours (similar similar to stocks market).If important information is released from overseas, during the time that the U.S. markets for futures are closed, the following day’s opening could have huge gaps, which could lead to significant losses if the movement is not in your position.
Spot FOREX is a Spot FOREX market runs continuously all day, every day starting at 7:15 AM New Zealand time Monday morning until 5:45 midnight New York Time Friday evening.
Dealers from every major FX trading centre (Sydney, Tokyo, Hong Singapore, Hong Kong, London, Geneva and New York/Toronto) guarantee a smooth transaction because liquidity moves across time zones from another.
Additionally Currency futures trade in currencies that are not USD denominated unlike spot FOREX the investor is able to trade in nearly any currency denomination or in more commonly stated USD amount.
The pit of currency futures even during regular IMM (International Market for Money) Market) hours, suffers from intermittent lulls in liquidity as well as regular price fluctuations.
Spot FOREX market is a constant source of liquidity and market liquidity more frequently than Futures.
With IMM futures, one is restricted in the currency pairs that he is able to trade. The majority of currency futures can be traded in only the USD.
With spot FOREX the possibility of trading foreign currencies against. USD or vs. one another on a ‘cross basis’, such as GBP/JPY/EUR, CHF/JPY, EUR/GBP , and AUD/NZD
A growing number of well-informed entrepreneurs and investors are diversifying their investments like bonds, stocks, and commodities using foreign currency due to some of the reasons listed below: (will continue to be)
ADVICE ON RISK:
Risks associated with currency trading Marginally trading currency is a very risky type of investment that is appropriate for institutions and individuals that are able to handle the potential losses that it can bring. A broker account lets you trade foreign currencies on a high leverage basis (up to 400 times your equity in your account).
The funds that are in accounts that trade at the maximum leverage could be lost completely when the position(s) which are in the account suffers even a single percent change in value, despite the risk of losing the entire amount invested.
Speculation on the market for foreign exchange is best done using funds for risk capital that, in the event of a loss they will not affect the financial security of the investor.