Compare to stock market, foreign exchange market is considered to be a bigger opportunity to make consistent money. If you know how the forex trading is functioning, then you can make money much easier. Nowadays, there are many people try to learn and trade forex. They must have their own and good reason for it.
But why are there so many people get into forex trading anyway? The following reasons are good enough to explain:
1. Boundless and Borderless Trading Activity
The foreign exchange market is trading round the clock on weekdays. Investors from anywhere in the world can do trading round the clock because the market fall on three different time zone globally.
2. Freedom of trading time
This also means freedom from normal office hours; investors can trade whatever time they are convenient. Surely, this attracts people from all walks of life. If you have a laptop, ipod or iPhone, etc then you can trade no matter where you are.
3. Much Lower Trading Fee
Online trading, also the purely liquid nature of the market and the electronic way of transacting make it less trading fee compare to stock market. Low trading fee will definitely attract more people to join this trading game. The spreads here are usually smaller than the spreads in other markets, and that would mean saving in trading fee.
4. Leveraging of Trading
Forex trading allows big leveraging on each transaction, giving you the chances to trade up to a hundred times your investment. Of course, this also means a bigger risk of losing money. Do a porper risk management will ensure your success in this investment.
5. Transparency and Accuracy
Using electronic in transactions and the liquidity of the market, movable assets is easier to analyze and manage. All trading can be done through your laptop or iPod or iPhone. Your deals can be executed fast as per your viewpoint and strategy. This gives you a better feel of the market cycle, making your predictions more accurate each time you trade.
6. Stable Profit Chances
Since your trading can be in both ways, one always has the opportunity for profit. You can buy or sell as you like. When the forex market is falling or turn south, then you can easily short selling first. Whether the market is bullish or bearish, you don't really need to worry about. What really matters is that you pick the right currency to trade.
Forex trading is considered to be the perfect palyground for everyone.Everybody is having an equal playing field. Even if the currency is falling, it just means that there is currency rising somewhere and the opportunity of profit exists.
An unlimited earning potential, the freedom of trading time, and the good opportunity makes the foreign exchange market an exciting opportunity for anyone.
