Why Forex Trading is a Good Investment
The forex trade happens to be the best income generating and investment opportunity. You can get into forex trading with a very small amount. You do not have to have some sort of degree or diploma for it but simply a guide to help you becoming successful in the trade.
And the reasons most investors do so are:
Never Sleeping Forex Market:
You can trade in forex anytime of the day as the market is open for 24 hours. This happens due to the banking organizations happen to be open all around the world in the different time zones. And those who wish to make some money in their spare time, forex trading is ideal for them as they can carry out after their day jobs.
The forex market happens to be very transparent where all the real-time news and analysis of forex information can be searched. This information can be used by forex trader and investors to follow a risk management strategy.
This tends to be quite beneficial for the new traders as few wish to first use a small amount of capital for testing the market.
Amazing Earning Potential:
In the forex market, almost $2 trillion different currencies are traded in the forex market. This makes it one of the largest and liquid financial markets in the world. As the transaction volume is so large, it is quite hard to manipulate the market rendering you with unlimited earning potential.
The traders are permitted to trade foreign currencies in forex market on high leverage. This leverage could be up to 100 times of their investment. You need to have $100 in order to trade $10,000 of currency margin that lends the trader a ratio of 100:1. An average forex trader with small trading account having under $10,000 shall profit immensely from the currency exchange rate.
No Exchange Fees & Commission:
In forex trading, there is no transaction or commission fee. Commission free trading is offered by most traders and forex traders are required to pay is spread while taking on a position. This is the different between the bid price and the ask price. It is quoted in pips which happen to be 1/100 of one percent.
You Gain Profit in Both Falling & Rising Markets:
Normally in investor in the share market is able to gain profit only if the market goes up. And if the price falls, he can either wait for the price to go up and keep it or sell it at loss. In forex trade however, traders get to profit both from bull and bear means rising and falling markets. Forex trade involves the selling and buying of currencies. When you purchase a particular currency, you also sell the other currency of that particular pair. And as the market moves, one currency is bound to increase value compared to other therefore, there lies an equal opportunity of making a profit from both rising and falling market.