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Why
Choose Forex?
The
cash/spot FOREX
markets contain
certain unique
attributes that
offer an unmatched
possibility for
profitable trading
in all kinds of
market conditions
or any step of the
business cycle. So
now you must be
thinking, why
bother? Well, the
answer to that is
quite simple.
Here’s what FOREX
has to show for
itself:
A
24-hour market: All the
market conditions can
be profited from at any
time, so there’s no
need to wait for the
‘opening bell’ that
exists with the
exchange.
Highest
liquidity: The FOREX
market is one of the
most liquid markets
that ever existed. This
means that a trader can
enter or exit the
market whenever they
feel like it all
through almost any
market condition,
minimal execution
barriers or risk and no
limits for daily
trading.
High
leverage: A leverage
ratio of up to 400 is
considered normal when
compared to a leverage
ratio of 2 (50% margin
requirement) in the
equity markets.
Obviously, this makes
trading in the
cash/spot FOREX market
uncomfortable as well
because it makes the
risk of the down loss
much higher, but in the
same way, it makes the
profit potential on the
upside much
nicer.
Low
costs for transaction:
Under the normal market
conditions, the retail
cost for transaction
(the bid/ask spread) is
actually less than 0.1%
(10 pips). The spread
could be less than 5
pips at bigger dealers,
and may increase a
great deal in more
dynamic
markets.
Always
a bull market: When you
trade in the FOREX
market, you are selling
or buying one currency
in exchange for
another. Essentially, a
bull market or a bear
market for a currency
is defined in terms of
the outlook for value
against other
currencies. If the
outlook is positive,
you get a bull market
where a trader profits
by buying the currency
against other
currencies. However, if
the outlook is
negative, we have a
bull market for other
currencies and a trader
profits being forced to
selling the currency
against other
currencies.
In
any case, there is
always an opportunity
for bull market
trading.
Read
more abour
FOREX
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