A 10-Point Plan for Money (Without Being Overwhelmed)
Jul 26, 2018 // By:admin // No Comment
Merits of Forex Trading
A major advantage of forex trading is that there are no commissions. In this case you get to save a lot of money. There are no clearing fees, exchange fees or brokerage fees involved in forex trading. The government is not involved which means there are no government fees either. Bid-ask spread is what compensates traders. Another advantage of forex trading is that there are no middlemen involved. You can only trade directly with the market. In this case the market names prices on the currency pair.
Contract sizes in forex trading are not fixed which is another advantage. This means you will determine your own contract size. This allows you to trade with a small account. Another benefit of forex trading is that transaction costs are very low. The retail costs can be very low under normal market conditions. Even for large transactions the cost is still low in forex trading.
The forex trading market is operational on a 24-hour basis. The market doesnt open at specific hours. This can be very convenient for people who are always busy. This is due to the fact that they can trade when they are not working. No one can corner the market when it comes to forex trading. There are very many participants in the foreign exchange market. No single entity has the authority to control the price in this case. In this case it appies for both the current and extended period of time.
Another benefit of forex trading is that traders have leverage. In forex trading, a small deposit can control a very large contract value. As a trader you can make huge profits from this leverage. Leverage also enables a trader to keep risk capital to a minimum. Ensure there is proper risk management so that leverage gets to work well. Another benefit of forex trading I high liquidity. The forex market is very huge. High liquidity is a great advantage because it means under normal market conditions, you can easily buy or sell. This is due to the fact someone else is interested in your other side of the trade. You never get stuck on a trade in forex trading. You will be in a position to set your online trading platform to close the moment you reach your desired profits. Another advantage of forex trading is that there are no barriers to entry. In this case getting started doesnt require much cash. This means you can open a mini or micro trading account. This means forex trading is also accessible to the average individual. There are free demo accounts in forex trading that enable you to build your skills on forex trading. You are also updated on current forex news using this account.