Why Trade the FOREX?

My purpose for autograph this commodity is to accredit to you the advantages of trading on the Forex market. However, there is one apologue that I ambition to abate afore I go further. The apologue is that there is a abnormality amidst trading and investing. To abate that apologue I adduce from Al Thomas, President of Williamsburg Advance Company, who wrote “If It Doesn’t Go Up, Don’t Shop for It”. He said “Everyone who invests is a trader, alone the time aeon is different.” It is a appointment that I took actively afterwards demography a advance in the blah exchange in 2000.

So now, let’s assay actualization of bill trading to those of blah and commodity trading.

Liquidity The Forex exchange is the a lot of aqueous cyberbanking exchange in the angel about 1.9 affluence dollars traded everyday. The bolt exchange trades about 440 billion dollars a day, and the US blah exchange trades about 200 billion dollars a day. This ensures bigger bargain beheading and prevents exchange manipulation. It aswell ensures calmly executable trading.

Trading Times The Forex exchange is attainable 24 hours a day (except weekends) which bureau that in the US it opens at 3:00 bulletin Sunday (EST) and closes Friday at 5:00 (EST), accepting animate traders to acquire the times they ambition to trade. Bolt trading hours are all over the axle depending on which commodity you are trading. Including connected trading times US stocks can be traded from 8:30 am to 6:30 bulletin (ET) on weekdays.

Leverage Depending on your Forex ceremony size, your advantage may be 100:1, although there are Forex brokers that activity advantage of up to 400:1 (not that I would anytime acclamation that affectionate of leverage). Advantage in the blah exchange can be as top as 4:1, and in the bolt market, advantage varies with the commodity traded but it can be actually high. Because the commodity markets are not as aqueous as the Forex market, its advantage is inherently riskier. Although I was never shut out of a commodity bargain by the day limit, the abhorrence was consistently in the ashamed of my mind.

Trading costs Transaction costs in the Forex exchange is the abnormality amidst the shop for and acquaint bulk of ceremony bill pair. There are no allowance fees. For both the blah and the commodity markets, there are transaction costs and allowance fees. Even if you use abatement brokers, those fees add up.

Minimum advance You can attainable a Forex trading ceremony for as little as $300.00. It took $5,000 for me to attainable my futures trading account.

Focus 85% of all trading diplomacy are bogus on 7 aloft currencies. In the US blah exchange alone there are 40,000 stocks. There are aloof over 200 commodity markets, although actually a few are so illiquid that they are not traded except by hedgers. As you can see, the below bulk of instruments allows us to absorption ceremony one added closely.

Trade beheading In the Forex market, bargain beheading is about instantaneous. In both the disinterestedness and commodity markets, you adding on a abettor to assassinate your trades and their after-effects are sometimes inconsistent.

While all of these actualization achieve trading the Forex exchange absolute attractive, it still requires a lot of education, discipline, allegation and patience. All trading can be risky.