With daily traded volume of up to 2.5 trillion on a single day, Forex market is extremely liquid. Concerns should be only limited to whether your market view is correct. If the price level you wish to trade is the current market rate, you can be assured that your order will be completely filled. No worries on partial fill or market depth, due to the high daily traded volume. Trade the currency at your desired price.
Being the largest financial market, you can be rest assured that there will be no manipulation to the market as no single entity can manipulate the market in any direction.
2. 24 Hour Market
Trade anytime you want to with Forex as its open 24 hours, 5 days a week. No market opening or closing, restricting your momentum in trades.
3. Good Trading Opportunities
For traders keen to leverage on the forex market, a daily range of 50 to 300 pips worth of trading opportunities is available for intraday traders.
4. Familiarity
Forex trading is not something unfamiliar to everyone. All of us do currency conversions at some point in our life. Important factors to understand the behavior of forex are, what constitutes to the strength or weakness of the currency. Is it determined by strength of economy? Demand and supply? So, understanding of the forex market is not something difficult.
5. Value of Currency
Consider the risk of a company’s stocks collapsing vs. the risk of a country’s currency collapsing. It should be obvious that currency is a more stable form of investment for trading.
6. Margin Trading
With margin trading, you can trade $100,000 worth of contracts with only $2,000 to $4,000. Yet, the trading opportunity is based on the actual contract size. With a smaller capital outlay, you can free up your cash for other forms of investments or usage.
7. Good Variety of Order Types
Though some traders are concerned that market will slip away while they are resting, causing sleepless nights, the variety of order types available helps to shorten the hours you need to keep monitoring the market. Use limit, stop loss, OCO orders, with time frame of either day or GTC to help you carry out trade effectively.
8. Forex vs Futures
Liquidity and Flexibility
The spot Forex market statistically shows in 2006 that the volume traded is a whopping $2.5 trillion daily, making it the largest and most liquid market in the world. Futures contracts are segregated into different contracts that are exchange traded. Forex contracts on the other hand are OTC. Having greater flexibility ensures higher liquidity to your trades. Your trades will always be done exactly at the number of lots you indicated. They will not be done only partially.
Being the largest financial market, you can be rest assured that there will be no manipulation to the market as no single entity can manipulate the market in any direction.
2. 24 Hour Market
Trade anytime you want to with Forex as its open 24 hours, 5 days a week. No market opening or closing, restricting your momentum in trades.
3. Good Trading Opportunities
For traders keen to leverage on the forex market, a daily range of 50 to 300 pips worth of trading opportunities is available for intraday traders.
4. Familiarity
Forex trading is not something unfamiliar to everyone. All of us do currency conversions at some point in our life. Important factors to understand the behavior of forex are, what constitutes to the strength or weakness of the currency. Is it determined by strength of economy? Demand and supply? So, understanding of the forex market is not something difficult.
5. Value of Currency
Consider the risk of a company’s stocks collapsing vs. the risk of a country’s currency collapsing. It should be obvious that currency is a more stable form of investment for trading.
6. Margin Trading
With margin trading, you can trade $100,000 worth of contracts with only $2,000 to $4,000. Yet, the trading opportunity is based on the actual contract size. With a smaller capital outlay, you can free up your cash for other forms of investments or usage.
7. Good Variety of Order Types
Though some traders are concerned that market will slip away while they are resting, causing sleepless nights, the variety of order types available helps to shorten the hours you need to keep monitoring the market. Use limit, stop loss, OCO orders, with time frame of either day or GTC to help you carry out trade effectively.
8. Forex vs Futures
Liquidity and Flexibility
The spot Forex market statistically shows in 2006 that the volume traded is a whopping $2.5 trillion daily, making it the largest and most liquid market in the world. Futures contracts are segregated into different contracts that are exchange traded. Forex contracts on the other hand are OTC. Having greater flexibility ensures higher liquidity to your trades. Your trades will always be done exactly at the number of lots you indicated. They will not be done only partially.
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