If you are looking for a way to invest your money, Foreign Currency Trading or Forex is definitely an option that you can consider. Unlike the Stock market, Forex has got a lot more advantage over it and this article will explain it to you.
In stock market, you will have to monitor countless companies in order to select which one you should trade. For example, there are 4,500 stock listed in the NYSE. Choosing one to trade could be a rather tough selection. On the other hand, you don't have to face this sort of dilemma with Forex. While there are dozens of currency pair that is traded every single day from Monday to Friday, you can basically focus on just a few. In fact, there are 4 major pairs that is widely traded by traders out there today. Now, paying attention to 4 pairs of currency is way easier than thousands of company isn't it?
Well, that as just one of the advantage that you can get if you trade Forex. There are many other advantages that might surprise you as you read on.
Versatility is what you can get in Forex trading because it is a 24 hour market. Brokers around the world usually operate from Mondays to Fridays. This is when the Forex market is active. There is no trading on weekends. The specific time of trading will depend on the location of your broker. For traders, it is great because they can choose to trade on certain sessions like the U. S. Or Asian or European market hours. Therefore, it gives the trader a lot of choice on when to they want to trade.
Then there is the fee for using the services of brokers which is usually commission free. There are no trading or transaction fees because there is no need for traders to trade currencies over the phone or via an agent. All the trader need to do is to execute their trade from the platform that their broker provides. What they do need is a stable internet connection.
This also means that the trader can perform instant market execution. So, the price that they are seeing in front of their monitors is the actual price that they get. Brokers are able to provide instant orders unless if the market is in a volatile condition. The Forex market also allows traders to perform short-selling or scalping because there is no restriction on how much or minimum profit level that you must achieve. You can basically take profit of 1 pip if you like.
So, there are many advantages that you can get if you see the power of Forex. However, the ultimate decision on whether to jump into this bandwagon is entirely up to you.
Article Source: http://EzineArticles.com/6536501
In stock market, you will have to monitor countless companies in order to select which one you should trade. For example, there are 4,500 stock listed in the NYSE. Choosing one to trade could be a rather tough selection. On the other hand, you don't have to face this sort of dilemma with Forex. While there are dozens of currency pair that is traded every single day from Monday to Friday, you can basically focus on just a few. In fact, there are 4 major pairs that is widely traded by traders out there today. Now, paying attention to 4 pairs of currency is way easier than thousands of company isn't it?
Well, that as just one of the advantage that you can get if you trade Forex. There are many other advantages that might surprise you as you read on.
Versatility is what you can get in Forex trading because it is a 24 hour market. Brokers around the world usually operate from Mondays to Fridays. This is when the Forex market is active. There is no trading on weekends. The specific time of trading will depend on the location of your broker. For traders, it is great because they can choose to trade on certain sessions like the U. S. Or Asian or European market hours. Therefore, it gives the trader a lot of choice on when to they want to trade.
Then there is the fee for using the services of brokers which is usually commission free. There are no trading or transaction fees because there is no need for traders to trade currencies over the phone or via an agent. All the trader need to do is to execute their trade from the platform that their broker provides. What they do need is a stable internet connection.
This also means that the trader can perform instant market execution. So, the price that they are seeing in front of their monitors is the actual price that they get. Brokers are able to provide instant orders unless if the market is in a volatile condition. The Forex market also allows traders to perform short-selling or scalping because there is no restriction on how much or minimum profit level that you must achieve. You can basically take profit of 1 pip if you like.
So, there are many advantages that you can get if you see the power of Forex. However, the ultimate decision on whether to jump into this bandwagon is entirely up to you.
Article Source: http://EzineArticles.com/6536501
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