BENEFITS OF TRADING FOREX
There are several aspects that makes Forex trading advantageous.
hour market
Forex market is a true 24-hour market from Sunday 5:00 PM ET to Friday 5:00 PM ET. Trading starts when the markets open in Australia on Sunday evening, and ends after markets close in New York on Friday.
High level of Liquidity
Liquidity is an asset’s ability to be sold without significant movements in the price. In Forex liquidity means that large amounts of money can be moved in and out of foreign currency with minimum price movement.
Low Transaction Cost
Transaction cost in Forex is very low. It is otherwise called the “spread”. The spread is the difference between buying and selling price.
Benefit from Leverage
Transaction cost in Forex is very low. It is otherwise called the “spread”. The spread is the difference between buying and selling price.
Potential Profit from Price Fluctuations
There is no restriction for directional trading in currency exchnage market. This means that if you predict that a currency pair is going to increase its value you can buy it (“go long”). Also, if you predict that a currency pair is going to decrease in value you can sell it (“go short”).