Thursday, April 9, 2009

Benefits of Forex Trading

No commission brokerage :
In contrast to the equities market, the Forex investors do not pay commissions, no custody, no purchase, no selling, no fees required to account.

Marked trend :
The foreign exchange market is a significant market trends. It is indeed rare that the courses remain for prolonged periods in a range, ie a channel horizontal. The investor can take advantage of opportunities for gains in both uptrend that trend.

The benefits to treat :
Forex brokers make available trading platforms to make instant transactions or not on the foreign exchange market. These are generally available several trading platforms, and even offer the possibility to have access to its trading account via mobile phone, pda ...

Most Forex brokers allow investors to place orders by phone toll-free passage of orders by phone is generally not allowed for mini accounts. Educate yourself on these terms, they can perhaps save you in the event of internet ...

Low transaction costs :
The only transaction fees on Forex match the bid-ask spread (difference between selling price and the purchase price). Example with a spread of 3 pips.

Many facilities:
Forex allows you to use a lever very simply and without fees unlike the Deferred Settlement Service (SRD) on the markets. Forex can also take short positions called "short" on the Forex, or vad market shares. This possibility of shorts is available for all exchange rates, unlike the stock market where only certain activities are eligible for SRD. The short positions in the foreign exchange market do not cause additional costs unlike the stock market. On the Forex market, the investor is always buyer and seller together. Imagine a long position on EUR / USD, the investor is long euro and dollar short.

The largest financial market in the world :
The foreign exchange market is the largest financial market in the world, the most liquid in the world ... More than 1 900 billion dollars traded daily on the Forex, for comparison, only 25 billion dollars traded daily on stock markets around the world. In addition, the volumes are increasing year by year ...

This enormous volume ensures a constant liquidity for spot transactions. The high liquidity of the market to prevent any manipulation. Even central banks can influence real exchange rate.

Low volatility:
The foreign exchange market is a market with low volatility, in fact we observe that the average daily on the eur / usd generally does not exceed 1%.

Forex is considered wrongly as a volatile market, but in fact it offers a low volatility. A mistake many investors are put in mind that a market is highly volatile and dangerous as gains or losses can be very important soon. But the significance of gains and losses is based on the significance of the effects of leverage permitted by the forex brokers. The leverage effect is solely responsible for this reputation.

Note that each investor chooses the size of its positions and therefore fully control their risk ... the money management is a primary tool, vital to invest in the markets ...

Easily Accessible Information:
The exchange rates are affected by many variables such as statistics published regularly on the savings (figures on employment, real estate, inflation ...), the decisions of states, governors of central banks (of the country on interest rates ...) ...

All this information is readily available through brokers, media, internet, print media ... and you can be clearly informed about the economic and financial state.

A continuous market
The foreign exchange market is a market that operates continuously from Sunday 23:00 to Friday 22:00. It is therefore possible for each investor to transact 24h/24h, 5 days over 7. These schedules allow private investors did not necessarily have the time during the day trader to take advantage of opportunities in the evening, night or early morning.

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