Reports of forex analysis with a magnifier and mobile on top

The forex market is around 17 times larger than the global GDP. It has a daily turnover of trillions of dollars and is one of the most sought-after earning avenues for investors worldwide.

The Asian forex market has garnered massive popularity among new traders over the past few years, mainly due to the increased accessibility and more resources available online.

Here are some of the many benefits of forex trading that you should know:

The Forex Market Is Open 24 Hours in a Working Week

Forex is a worldwide market open 24 hours a day in different parts across the globe. Investors can trade whenever they want during the working week.

Traders can also take advantage of the optimal time, i.e., when the forex market is most active, to maximize the chances of profits.

Liquidity and Volatility

The forex market is highly liquid as currencies are trading 24 hours a day. It’s an active market with trillions of dollar worth of transactions carried out every day.

Higher liquidity also translates into a less volatile market, meaning that inventors don’t have to worry about drastic price fluctuations unless an extraordinary occurrence takes place. 

A trader using a Forex app in an iPhone

Transaction Costs are Significantly Low

When trading in the Forex market, investors get to keep a large chunk of profits due to extremely low transaction costs, which are included in the form of a spread.

Spreads are measured in pips, which refers to the 4th decimal point of the price. Brokers also charge nominal flat commissions, which represent an insignificant portion of the profits.

High Leverage to Trade with Bigger Money

Forex offers much higher leverage compared to other financial instruments like stocks. Investors can take advantage of minute price movements to earn enormous profits through leverage.

The leverage can be as high as 100:1, meaning that investors can trade up to $100 in value for every $1 in their account.

Directional Trading Is Allowed

Forex traders can employ the directional trading strategy, i.e., take a short or long position if the market is falling or rising, respectively.

Traders can exploit small movements in currency pairs to earn profits. They can also utilize risk-management tactics to minimize risk and avoid significant losses.

Forex Trading Asia is one of the best forex trading platforms that contain the most recent updates on the forex exchange market. Find analysis, latest updates, and many other resources on their website. You can register today for free!

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