7 Reasons to Trade Forex

Share

forexTrading forex is the answer to many needs to increase market exposure and beat the environment of zero interest rates. It is so popular that it has become the biggest financial marketplace around the globe. The forex market, which was once governed by major investment firms and banks, is now accessible to everyday investors. Here are 7 reasons why investors prefer forex.

  1. The forex market is available around the clock. Somewhere in the world, the market is open and ready for business at any given time. If you’re trading from home, it really doesn’t matter what time it is in Tokyo or London. Through the internet, you have access to markets that are open 24/7.
  2. The forex markets like to stay active. They are volatile and changes are not always predictable. For intraday trades, that volatility between different currencies can be used to result in nice profits. When compared to regular liquid stocks, the volatility usually falls between 60 and 100. Compare that to forex trading, which is about 500. That makes room for high profits from any level of trader.
  3. Forex trading tends to be transparent. This takes a lot of the surprise element out of making trades. In short, what you see is what you get. There aren’t hidden surprises if you’re careful to watch the news around the world and analyze the charts.
  4. There is a huge potential to make high profits in forex. And unlike other markets, profits don’t necessarily happen only when the market is rising. Take the stock market, for instance, where you keep your eyes glued to the board for the prices to rise. In forex, you can also earn big in when currency pairs go down. Since trades are based on two sets of currency and not only one, one of those pairs could be going up while the other is going down and you can still make money. By watching the charts and planning your moves, you can profit in either direction with forex.
  5. You don’t need to be super wealthy to begin working in the forex market. You can leverage what you have with a minimum of 100:1 and still be able to play the game. This opens up the field to any trader who wants to learn and earn.
  6. The market is outrageously big all around the world. There has never been anything like it in the international market. It is estimated that the amount of money traded in forex on a daily basis is somewhere between two to five trillion dollars. It is a huge draw to investors who want the excitement of being in something that is really big and can profit them with wild amounts of money.
  7. The foreign currency market cannot be influenced by large banks or financial institutions. It’s a level playing field for everyone, from the smallest individual trader to the largest financial organization. Due to its overall size, everyone trading in forex is equally important.

Join our newsletter

Screen_shot_2017-04-25_at_1.05.57_pm

Subscribe to get the latest "Engineer Your Finances" content via email.

Powered by ConvertKit
About the author

Join our newsletter

Subscribe to get the latest "Engineer Your Finances" content via email.

Powered by ConvertKit

ModestMoney.com Top Finance Blogs

Archives