In recent years the spot market Forex (foreign exchange market) has grown over 60% and now represents the largest financial market in the world in terms of volume. Many stock traders, futures and stock market have moved to or combined Forex trading in the forex market with trading in other financial markets.Before comparing Forex and Stocks i need to say that i am using very powerful forex software platform OIL/USD trade online.
Trading the Forex market has some advantages over other markets Funding will due to its performance, liquidity and characteristics. In this article I will describe the most important advantages of the Forex market to other financial markets.
1 - Operation 24 hours a day
The forex market remains open 24 hours a day. When we become a centralized market, foreign exchange transactions are carried out throughout the day, from Japan to the United States, through Europe, the currency market does not stop. This allows a flexible schedule that does not exist in other financial markets and what is best, as a trader can always react to the breaking news. In addition, by not closing, your operations are not affected by reports of losses or gains posted after the close of the session, as in the bag, because there is no closures and openings (except weekends) allowing control better chance for longer term trading. I am laying down at my home and watching the market metrics 24/7 at my forex software platform OIL/USD trade online.
2 - Increased liquidity
The denials in Forex daily volume is about 50 times the New York Stock Exchange. Because of this large volume is highly unlikely not to find a partner for your operations.
Due to low trading volume, investors in the stock market and other markets traded are more vulnerable to liquidity risk, resulting in a higher spread or price movements more marked in response to any relatively large transaction.
3 - Leverage
In leverage Forex ranging from 100:1 to 400:1 even compared to the typical 2:1 stock, this allows transactions from 100 to 400 times higher than the actual capital available to increase the earning potential dramatically compared to the equity markets and future in which the most common leverage is 2:1.
4 - Minimum Capital Risk
In the forex market there are brokers who can open an account even with a dollar. Needless to say the least risk capital is actually less than needed to invest in stock. On average, the minimum capital investment is 300 USD.Para na forex market requires less capital risk than other markets.
5 - Special Operations
The high liquidity in the foreign exchange market allows us to specialize in one product. For example you can specialize in the pound and its exchange rate against the U.S. dóalr and to monitor progress effectively.
6 - low transaction costs
The Forex market is considered one of the financial markets with lower operating costs. Most brokers charge based on the following two schemes:
Spread - The brokers charge a different price for buying and selling transactions, the difference is that it is the broker.
Spread and Commissions - Most brokers charge a commission this scheme, but usually the spread is very small, even while transaction costs may be lower than the brokers that charge only spread.
7 - The same potential for profits in both bull and bear markets
In every open Forex position, an investor has a long position in one currency and short in another (Later in depth explirare you is to get long or short in a currency). A short position is one in which the trader sells currency before it will depreciate. In this case, the investor benefits from a decline in market price.
8 - Operate from anywhere
The fact that the transactions do not have a physical place where all happen, we can make transactions anywhere in the world. We just need an Internet connection where we can have access to broker
