More and more well disclose investor
and entrepreneurs are varies their traditional investments like stocks, bonds
& commodities with foreign currency because of the following reasons:
1) FOREX is the huge financial
market in the world.
With a daily trading volume of over
$1.5 trillion, the spot FOREX market can absorb trading sizes that dwarf the competence
of any other market. In fact, when contrast with the $50 billion daily market
for equities or the $30 billion futures market; it becomes rapidly apparent
this gives you, and millions of other FOREX traders, almost endless trading
liquidity and flexibility.
2) FOREX is a True 24-hour market.
The FOREX Market never sleeps. Trading place can be entered and exited at
any moment around the globe, around the clock, 5.5 days a week. There is no expectancy
for an opening bell as in the case of trading stocks. It is a 24- hour,
continuous electronic (ONLINE) currency exchange that never closes. This is
very likeable for you if you want to trade on a part-time basis, because you
can select when you want to trade: morning, noon or night.
3) There is never a Bear Market in
FOREX.
You can have paths to a seamless
exchange of money. Currencies trade in "pairs" (for example, US
dollar vs. JPY (YEN) or US dollar vs. CHF (Swiss franc), one side of every
currency pair (for example, USD/CHF) is regularly moving in relation to the
other. Thus, when you buy the said currency, you are actually simultaneously
selling the other currency in that particular pair. As the market moves, one of
the currencies will enlarge in value versus the other. Of course, it is up to
you to choose the correct currency to be long (you bought) or short( you sold).
4) High Leverage - up to 400:1
Leverage.
You are approved to trade foreign
currencies on a highly leveraged basis - up to 400 times your investment with
Fenix Capital Management, LLC and with some other brokers.
Standard 100,000- US$ currency lots
can be traded with as little as 0.25% margin, or $250.
Mini FX accounts are permitted to
trade with just 0.25% margin, meaning, just $25 allows you to control a
10,000-unit currency position.
Futures traders, who are skilled to
margin requirements usually equal to 5-7%-8% of the contract value, will
immediately characterize that the FOREX market provides much greater leverage,
and for stock traders, who must post at least 50% margin, there’s no
comparison. If you’re in regards for an efficient use of trading , trade the
Forex Market.
5) Price Movements might be Highly
Predictable.
Currency prices in the FX market usually repeat themselves
in relatively predictable cycles, creating trends. The strong trends that foreign
currencies develop are an important advantage for traders who use the
"technical" methods and strategies.
Unlike stocks, currencies have the tendency to develop
strong trends. Over 80% of volume is speculative in nature and, as the end; the
market frequently overshoots and then corrects itself. As a technically-trained
trader, you can easily recognize new trends and breakouts, to enter and exit
positions.
6) YOU don't pay commissions or fees to trade FOREX
When you trade FOREX, through Fenix Capital Management LLC
(FCM) you can do it totally FREE of commissions and fees, regardless of your
account size.
Fenix Capital Management LLC, requires a very low minimum
amount to open a brokerage account, only US$ 200 and they do not charge
commissions or fees to trade or to retain an account, regardless of your
account balance or trading volume.
7) YOU don't have to pay trading fees or exchange fees.
There are nothing of the usual fees, which futures and
equity traders are accustomed to pay:
NO exchange or clearing fees,
NO NFA or SEC fees.
Because currencies trade over-the-counter (OTC), via a
global electronic network, in FOREX, what you see on your trading screen, is
what you get, agreed you to make quick decisions on your trades without having
to worry or account for fees that may affect your profit/loss or slippage.
In the equity and commodity markets, you must pay both a
commission and exchange fees. The over-the-counter structure of the FX market take
away exchange and clearing fees, which in turn lowers transaction costs.
8) HOW to Forex brokers make money if they don't charge
commissions?
Like all traded financial products, over-the-counter
currency trading involves a bid/ask spread, which represents the prices at
which your counterpart is willing to trade. Your broker will receive a part of
this bid/ask spread.
Because the currency market offers round-the-clock
liquidity, you receive tight; competitive spreads both intra-day and night.
Stock traders can be more unstable to liquidity risk and typically receive
wider trading spreads, especially during after-hours trading.
9) Market Transparency.
Market transparency is highly desired in any trading
environment. The better the market transparency, the more efficient the market
becomes. Different to other markets where transparency is compromised (like in
the many recent scandals), FOREX markets are highly transparent (i.e.,
analyzing countries, and having access to real-time research / news, is easier
than analyzing companies).
Because of this transparency, as an FX trader, you will be
able to apply danger management strategies in accordance to your fundamental
and perceptive indicators.
10) Instantaneous Order Execution
The FX market offers the top level of market transparency
out of all the financial markets. Because of this, order execution and fill
confirmation usually occur in just 1-2 seconds.
In Forex, order execution is all-electronic and because
you'll be trading via an Internet-based platform, instantaneous execution is
routine.
There are no exchanges, no traditional open-outcry pits, no
floor brokers, and consequently, no delays.( will be continued )
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