Forex, the foreign currency market, is really a worldwide market for selling and buying foreign currencies. The most important currencies which are traded are the U.S. Dollar (USD), Euro (EUR), British Pound (GBP), Canadian Dollar (CAD), Australian Dollar (AUD), Japanese Yen (JPY), and the Swiss Franc (CHF). The aim of this post is to not go into the details of how Forex works, but to match the advantages of buying and selling the foreign exchange market versus trading the Equity (American stocks) or Futures markets (Commodities).
The foreign currency market certainly is the largest market on earth with over 3 trillion dollars traded everyday. This compares to the 200 billion dollars traded daily in the Equity and Futures market each. For this reason, the foreign exchange market gains advantage from fairer prices, price stability, and better trade execution.
Forex offers the benefit of being open 24 hours a day. The Forex market opens on Sunday afternoon and remains open until it closes on Friday afternoon. The Equity and Futures investing arenas are only open Monday through Friday 8:30 a.m. to 5:00 p.m. Eastern Standard Time. This provides Foreign exchange traders the chance to trade around their personal schedule. Also, liquidity in the Equity and Futures trading markets are usually reduced after regular trading hours.
When dealing Forex, you do not have the commissions or transaction fees which exist within the Equity and Futures markets. You only pay a spread on the currency pair that you are trading and costs are extremely low, particularly when compared to the other markets.
Investment leverage in the Currency markets is often as high as a 200:1 margin. Inside the Equity and Futures markets your average margin is 4:1. Which means that you can control $10,000 amount of currency with just a 50-dollar margin.
Investment leverage inside the Fx market can be as high as a 200:1 margin. Equity and Futures markets, traders are required to fund several thousand dollars to open up a trading account. With the Currency markets, you can open a mini account for only 300 dollars and begin trading.
Within the Currency markets, you are able to buy long or sell short any currency pair without any limitations or significant difference in risk.
Being an investor in the Foreign exchange market, it is possible to pay attention to just a few major currencies. You can find 7 major currencies yielding 4 major currency pairs that most Foreign currency investors concentrate on. Whereas in the Equity market, investors have more than 40,000 stocks to pick from when contemplating the best places to invest their funds.
There are numerous points to consider when selecting which market you want to spend time and funds. The Forex market provides numerous advantages above the other major investment markets that will enable you, the investor, to produce bigger profits, take less risk, and spend more time with your own life and less time investing.
In order to make Forex trading easier a Forex robot software could be a worthy investment. For a starter I would recommend the Pipjet Forex system. Obtain your copy by simply clicking on the connection below.
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Thank you for reading my post.
Dennis Sampson
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