Accessibility – It’s no wonder that the Forex market has the trading volume of 3 trillion a day ‐ all anyone needs to take part in the action is a computer with an internet connection.
24 Hour Market ‐ The Forex market is open 24 hours a day, so that you can be right there trading whenever you hear a financial scoop. No need to bite your fingernails waiting for the opening bell.
Narrow Focus – Unlike the stock market, a smaller market with tens of thousands of stocks to choose from, the Forex market revolves around more or less eight major currencies. A narrow choice means no rooms for confusion, so even though the market is huge, it’s quite easy to get a clear picture of what’s happening.
Liquidity ‐ The foreign exchange market is the largest financial market in the world with a daily turnover of just over $3 trillion! Now apart from being a really cool statistic, the sheer massive scope of the Forex market is also one of its biggest advantages. The enormous volume of daily trades makes it the most liquid market in the world, which basically means that under normal market conditions you can buy and sell currency as you please. You can never be in a jam for currency to buy or stuck with currency that you can’t unload.
The Market Can’t Be Cornered ‐ The colossal size of the Forex market also makes sure that no one can corner the market. Even banks don’t have enough pull to really control the market for a long period of time, which makes it a great place for the little guy to make a move.
It doesn’t take a financial genius to figure out that the biggest attraction of any market, or any financial venture for that matter, is the opportunity of profit. In the Forex market, profitability is expressed in a number of ways.
First of all, just to set the record straight, you don’t have to be a millionaire to trade Forex. Unlike most financial markets, the Forex market allows you to start trading with relatively low initial capital. At eToro, you can start trading Forex with as little as $25!
Right about now you’re probably asking yourself: “What chance do I have of profiting with such a low initial investment?” The Forex market doesn’t require large initial investments because it allows you to use leveraged trading.
Leveraged trading lets you open positions for tens of thousands of dollars while investing sums as small as $25. This means that Forex trading has the profit (and loss) potential of tens and even hundreds of percent a day!
What is also unique about the Forex market is that any sort of movement is an opportunity to trade. Whether a currency is crashing or soaring, there is always room for speculation, since you always have the option of buying or selling the currency of your choice. Unlike the stock market, you are not limited to speculating on rising stocks, and a falling market is just as good for business as a rising market.
Having said all that, it is important to remember that as profitable as the Forex market is, it still carries all the risks involved with financial trading. You should always be aware of the risk, and never risk money that you can’t afford to lose.
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