Learn To Trade
Advantage of forex trading
02-08-2017 | No Views : 1248
Advantages of trading in the foreign exchange marketThere are many benefits and advantages of trading in the Forex market. Together we review some of those features that have led people to this type of trading without any other.
No Commissions:Like other trading markets, there are no clearing rooms, commissions, or selling or buying fees when trading in the Forex market. The broker doesn't take commission on the execution of purchases and sales, not only the price difference.
There are no intermediaries:Forex trading allows trading right at the time you want and at the price you think is the best place to sell or buy. It is a market for immediate dealing with no intermediaries inside it. In this market, the trader deals directly with the forces that influence currency movements.
Trading in small amounts:It does not require opening a real account in large amounts, which allows small traders to open accounts easily. In some companies, you can open a real account for as little as 25$.
Lower transaction costs:Transaction costs in brokerage firms are lower than in other financial markets. Sometimes the price differential for some major pairs is only three.
The possibility of trading at any time you want:It is a 24-hour market. so you can trade at any time from the beginning of trading with the opening of Asian trading until the end of the day with the closure of the US stock market. Which will prompt you to trade at any time beside your basic job to see some part-time work.
It is impossible to influence certain forces on the movements of currencies:
No person or institution can control the movements of the forex and pay a certain pair to rise or fall. Even central banks worldwide can't control the fate of their currencies. In the end, demand and supply are what affect the value of the currency.
Trading using leverage:
The leverage allows you to trade with the size of your capital, helping you make more profits. For example, a broker can give you a leverage of 1:50, which means you deposit the margin at 50$ and you can trade 2500$, either by buying or selling.
Because the Forex market is a common and widespread market, so it has high liquidity, there are always sellers and buyers at all prices. Thus, you can easily buy or sell as a trader by simply pressing the process button in the trading platform and immediately entering the deal.
No trading restrictions:
Unlike the stock market, there are no restrictions on trading in the foreign exchange market. Everything you need is a computer, internet and download platform. As mentioned above, you can open an account for as little as 25$.
First, you can trade on a demo account:
One of the most important features of forex trading is trading on a demo account first. This will help you gain the experience needed to make more profits before trading on real money and risking your money.
Profit in both ascending and descending directions:
In the end, you can make a profit either by selling a currency against another currency, or by buying one currency against another. Unlike the stock market you gain from when the stock is up. So you can make use of profits at any time and in any direction where the pair moves.
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