Advantages of the Forex Market

hamedahmed

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What are the advantages of the Forex Market over other types of investments?

When thinking about various investments, there is one investment vehicle that comes to mind. The Forex or Foreign Currency Market has many advantages over other types of investments. The Forex market is open 24 hrs a day, unlike the regular stock markets. Most investments require a substantial amount of capital before you can take advantage of an investment opportunity. To trade Forex, you only need a small amount of capital. Anyone can enter the market with as little as $300 USD to trade a "mini account", which allows you to trade lots of 10,000 units. One lot of 10,000 units of currency is equal to 1 contract. Each "pip" or move up or down in the currency pair is worth a $1 gain or loss, depending on which side of the market you are on. A standard account gives you control over 100,000 units of currency and a pip is worth $10.

The Forex market is also very liquid. When trading Forex you have full control of your capital.

Many other types of investments require holding your money up for long periods of time. This is a disadvantage because if you need to use the capital it can be difficult to access to it without taking a huge loss. Also, with a small amount of money, you can control



i will contiune later
 
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Well, i dont see how it can be spam when he doesnt seem to wanna sell anything....
 
Not yet. It's the usual guff they give though, trying to sound helpful by telling us the sky is blue and pigs roll in mud. And then they post a link to their website either in the thread they open or in their profile. Seen it way too many times in this forum.
 
Liquid doesnt really matter for traders with accounts less than $100 million

Leverage you can infact get higher leverage on futures forex contracts than 100:1 on forex. Even large accounts only get 50:1

Regards

Baldur
 
Just because the market is open for 24H does not make it better. Many futures markets are open for 24 hours now. There are specific times when it is best to active in all markets. London time rules in the FX market.

Regards

Baldur
 
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