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Advantages
of the FOREX:
- Seemless 24-hour
market. Most
brokers are open from Sunday
at 5:00pm EST until Friday
at 4:30pm EST with the
ability to trade in the US,
European, and Asian markets.
During the trading week
there is no waiting for the
market to open to execute
trades as is the case with
stock; working orders can be
executed day or night.
- Commission free
trading.
Most Forex brokers do not
charge a commission but
instead are compensated
through the bid/offer
prices. This practice may
vary from broker to broker.
- High Leverage.
A small margin deposit can
control a much larger total
contract value. For example:
200 to 1 leverage enable Forex traders to buy or sell
$100,000 worth of currencies
with $500 margin deposit.
The high degree of leverage
in Forex means that any
market movement will have an
equally proportional effect
on your deposited funds,
which can work against you
leading to large losses in
excess of amounts deposited,
as well as for you.
- High liquidity.
In most instances the
Forex market is extremely
liquid. There is
always a buyer and a seller
in the market. There
are exceptions during market
gaps and during major
fundamental announcements.

With $1.9 trillion changing hands daily, the FX
market is extremely liquid
(except during market gaps
and during major fundamental
announcements).
Market participants include
banks, investment funds,
corporations and individual
traders around the world.
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