Forex market: Advantages

The following factors make the Forex market look particularly attractive for financial speculators:

Market volume

The volume of foreign exchange-related transactions is significantly higher than that of other markets, which –excluding other factors – eliminates the possibility that some market participants may forge any meaningful alliance to disrupt the market and also enhances the accuracy of technical analysis applied to currency exchange rates.

Market stability

The remarkable trading volumes of the Forex market and the players’ focus on practical, business-oriented goals mitigate risks associated with uncontrollable price movements. Nonetheless, the market is by no means inert and responds immediately to global political and economic events.

Round-the-clock trading

Trades can be executed almost round-the-clock, except on weekends and holidays, with market activity not abating at any time of the day thanks to differences in time zones in Australian, Asian, European, and North American economic areas.

Electronic trading

Any market participant who signs an agreement with a Forex broker can trade either at a dealing center, or at home, via phone or any Internet-connected computer. In fact, one can trade in the Forex market whenever and wherever one likes.

Margin trading

This means that a market participant can trade lots, whose cumulative value can substantially exceed (sometimes by hundreds of times) his or her own capital. The most significant implication of this trading technique is that long positions (the bet that the value will go up) and short positions (the bet that the value will go down) yield essentially the same results.

Completely commission-free

And last but not least –Forex trading is completely commission-free.

As you can easily understand, a combination of all these factors makes Forex trading a leading segment among other sectors of the financial market.