Forex Trading Advantages | ForexGen
Investment in forex market has seen a dramatic increase in recent years. Let us look at some of the advantages of trading in forex.
1. .A forex trader can make a profit whether the market is bearish or bullish, unlike the capital market. Forex has no strict regulation in speculation, so a profit can be made through a long-term or short-term transaction. Because the forex market is a double-transaction market, forex traders can make profit in both upward and downward trends.
2. Forex traders can profit from the ordinary news, such as changes in interest rates. The forex market is highly-sensitive to the political, financial and cultural developments of various countries, and this volatility creates numerous opportunities for investors.
3. The stock market can only be traded on during daytime at a specific time, generally from 9:30am to 4:00pm. With a full-time job, it becomes difficult to take advantage of numerous trading opportunities. The forex market can be traded on 24 hours a day for 5 days of the week, so forex traders are free to trade during their free time after working hours.
4. Forex traders can obtain a much larger transaction compared to the stock market, sometimes more than 100 times larger. According to the present US situation, a $1,000 investment in the stock market allows the investor to obtain $2,000 of stock domination property (a proportion of 2:1). It is not unusual for forex traders to execute transactions with a proportion of 100:1.
5. In the stock market, there are hundreds of different kinds of stocks, which makes choosing a stock itself a very difficult decision. The forex market has a limited number of currency combinations; this enables forex traders to better concentrate on their investment, and calculate the return on alternate invesments (other currency combinations( .
6. Technical analysis plays a very important role in the forex market, due to the enormous daily trading volume (in excess of US$ 190 billion) - such a large market easily digests any forex trader's transaction cash. Under this situation, the accuracy of technical analysis is better than in any other financial market, and the chances of using technical analysis to make profit is also much higher.
1. .A forex trader can make a profit whether the market is bearish or bullish, unlike the capital market. Forex has no strict regulation in speculation, so a profit can be made through a long-term or short-term transaction. Because the forex market is a double-transaction market, forex traders can make profit in both upward and downward trends.
2. Forex traders can profit from the ordinary news, such as changes in interest rates. The forex market is highly-sensitive to the political, financial and cultural developments of various countries, and this volatility creates numerous opportunities for investors.
3. The stock market can only be traded on during daytime at a specific time, generally from 9:30am to 4:00pm. With a full-time job, it becomes difficult to take advantage of numerous trading opportunities. The forex market can be traded on 24 hours a day for 5 days of the week, so forex traders are free to trade during their free time after working hours.
4. Forex traders can obtain a much larger transaction compared to the stock market, sometimes more than 100 times larger. According to the present US situation, a $1,000 investment in the stock market allows the investor to obtain $2,000 of stock domination property (a proportion of 2:1). It is not unusual for forex traders to execute transactions with a proportion of 100:1.
5. In the stock market, there are hundreds of different kinds of stocks, which makes choosing a stock itself a very difficult decision. The forex market has a limited number of currency combinations; this enables forex traders to better concentrate on their investment, and calculate the return on alternate invesments (other currency combinations( .
6. Technical analysis plays a very important role in the forex market, due to the enormous daily trading volume (in excess of US$ 190 billion) - such a large market easily digests any forex trader's transaction cash. Under this situation, the accuracy of technical analysis is better than in any other financial market, and the chances of using technical analysis to make profit is also much higher.
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