Why Trade Forex
SEVERAL REASONS WHY TO TRADE FOREX
The market of Forex Trading is extremely popular with investors due to the following benefits they can enjoy:
- Liquidity position
Forex is the vastest financial market in the whole world. It is equivalent to USD 4 trillion lapsing every day. Such liquidity position (especially in relation to basic currency pairs of the markets of foreign exchange) allows to achieve steady prices and the lowest switch rate (expenses related to trading). Exchange rates of foreign currency can differ depending on a broker. That’s why it is important to make sure that you choose a fx broker with good reputation that proposes competitive forex spreads. We recommend you to learn more about the forex trading platform and obtain the support of professional analysis of the forex market before making any investments in the online market.
Forex is known to be a full day market that operates on a 24/7 basis. It is possible to trade at any time from any place of the world.
- Lower operating costs
As a rule, there are no charges, commissions or additional fees on Forex, except the ones for the spread. However, when trading on ECN’s such as Currenex, for example, commissions are applied.
- 1:500 Leverage
Leverage is known to be a powerful tool. It is required to support a deposit of USD 200 US dollars to trade $100,000 (1 lot). As a result, such high leverage together with quick fluctuations of the rate make the Forex market very profitable and risky at the same time.
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Forex (FX) Trading on Margin
Trading on margin allows numerous investors to trade assets with the value that is much higher than the capital in their accounts. At the same time, this does cause more risk. Serious losses are possible in case the market starts moving against the position of the trader. Traders are recommended to attentively monitor the margins they use. The reason of it is that in case they exceed the available collateral, it will be necessary to close or reduce the positions, or even cover them with additional deposits. Don’t hesitate to contact us to get more information about trading on margin with the aid of our Forex trading accounts.