Great Advantages of the Forex Market


FOREX has become one of the world’s largest financial markets dealing in real-time exchange of currencies of different countries. In the beginning only banks and financial institutions were the participants of this foreign exchange market. Later these were joined by corporations. Because of the liberalized policies nowaday’s general public has become another important participant of this trade. 코인마진거래

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Following advantages have made FOREX trade as one of the most popular market:

  1. 24 hour per day Market: The currencies are high in demand. The market is open for 24 hours a day from Sunday 5 p.m EST to Friday 4.00p.m EST (Eastern Standard Time). FOREX market operates on very convenient timings i.e., 24 hours per day and 5.5 days a week basis around the world; where as the stock market can be accessed only less than 7 hours a day. FOREX trading is not a centralized trade. It is conducted through Electronic Communication Networks (ECNs) and phone networks in various markets around the world.
  2. Less Cost (or) No Cost: Basically forex market has very less commission charges compared to any other stock market.
  3. High Leverage Margin: FOREX market offers a huge amount of leverage to the traders. Means, with small a mounts of deposits high profits can be gained. Market offers a trade margin of 50, 100, 150 or 200 to 1. (50:1, 100:1, 150:1, 200:1) This facility gives the forex trader an ability to make extraordinary profit. This is for the reason that the average daily percentage change of a major currency is less than 1%, whereas a stock can simply have a 10% price change on any given day.
  4. High Liquidity: FOREX market is considered as the most liquid market in the world. This high level of liquidity makes it a terrific market for investment, because investments are very easily converted into cash. Because the market consists of currencies, there is never a problem in cashing out on an investment.
  5. Profit potential in both rising and falling markets: As trades are always done in pair of currency pairs, Forex traders can always find chance to make money in anytime, regardless of the fall or rise period of one single country currency. There is no structural bias to the market and there are no restrictions on short selling in FX market. Trading in Forex gives you an equal prospective in rising and falling market.