Benefits of Forex Trading
There are many benefits and
advantages to trading Forex. Here are just a few reasons why so many
people are choosing this market as a business opportunity:
1. LEVERAGE: In Forex trading, a small margin deposit can control a much
larger total contract value. Leverage gives the trader the ability to
make extraordinary profits and at the same time keep risk capital to a
minimum. Some Forex firms offer 200 to 1 leverage, which means that a
$50 dollar margindeposit would enable a trader to buy or sell $10,000
worth of currencies.
Similarly, with $500 dollars, one could trade with $100,000 dollars and
so on.
Forex Trading Ahmedabad
2. LIQUIDITY: Because the Forex Market is so large, it is also extremely
liquid. This means that with a click of a mouse you can instantaneously
buy and sell at will. You are never 'stuck' in a trade. You can even set
the online trading platform to automatically close your position at your
desired profit level (limit order), and/or close a trade if a trade is
going against you (stop order).
3. PROFIT IN BOTH 'RISING' AND 'FALLING' MARKETS: On the stock markets,
you can only make money if shares are rising, but in economic recession
and falling 'bear' markets, there is little chance of making big money.
Forex is different. One of the most exciting advantages of FX trading is
the ability to generate profits whether a currency pair is 'up' or
'down'. A trader can profit by taking a 'long' position, (buying the
currency pair at one price and selling it later at a higher price), or a
'short' position, (selling the currency pair and buying it back at a
lower price). For example, if you think the US dollar will increase in
value vs. the Japanese Yen then you will buy Dollars and sell Yen (go
long). If you think the Yen will increase in value against the Dollar
then you will sell Dollars and buy yen (go short). As long as the trader
picks the right direction, a
potential for profit always exists.
4. 24 HRS: From Sunday evening to Friday Afternoon EST the Forex market
never sleeps. This is very desirable for those who want to trade on a
part-time basis, because you can choose when you want to trade--morning,
noon or night.
5. FREE 'DEMO' ACCOUNTS, NEWS, CHARTS AND ANALYSIS: Most Online Forex
firms offer free 'Demo' accounts to practice trading, along with
breaking Forex news and charting services. These are very valuable
resources for traders who would like to hone their trading skills with
'virtual' money before opening a live trading account.
Forex Trading Ahmedabad
6. 'MINI' TRADING: One might think that getting started as a currency
trader would cost a lot of money. The fact is, it doesn't. Online Forex
Firms now offer 'mini' trading accounts with a minimum account deposit
of only $200-$500 with no commission trading. This makes Forex much more
accessible to the average individual, without large, start-up capital.
About the author:
My name is Cynthia Macy and I've been trading various markets for over
12 years. I now concentrate on the forex market, as it has several
advantages over trading other markets. If you'd like to learn more about
forex trading, visit:
http://www.daytrade-forex.com
Request the 'Trade of the Week' to see actual trades using our trading
methods and strategies.
Circulated by Article Emporium