What is Forex Market?
The answer to that question runs deep and wide. There are many benefits of the Forex Market, and some include:
The Forex Market is the world’s largest financial market. In a day, it clears at least $5 trillion worth of trades. That is awesome. For comparison, the New York Stock Exchange (NYSE), the world’s largest stock market, has an average trading volume of just $169 billion. But why is the sheer huge size of the Forex Market an advantage?
Because there are so many buyers and sellers in it every day, it is easy to trade. And also, for the same reason, investors cannot manipulate it.
To day trade stocks, you need to have a minimum capital of $25,000 according to the law. The Fx Market is also relatively easy to enter. With as low as $300, you can start trading in it. While it is not recommended, however, that you start with so little, the point is that the market, perhaps, has the lowest entry barriers of all.
24/6 Trading Hours
Another key advantage of the Fx Market over its counterparts is its flexible trading hours. The market is open 24 hours a day, nearly 6 days a week. As a result, it does not matter what you do, whether you are a teacher or a homemaker, you can also get involved in it. Also, the flexible trading hours of the market also makes it possible to trade, while also keeping your day job.what is forex market,Foreign Exchange Market
Immense Profit Potential
As a Forex Trader, your earning potential is limitless. This is one of the differences between trading in the Forex Market and slugging it out at a 9-5. And another thing; the Forex Market also offers a higher profit potential than other financial markets in that its participants can profit from both rises and falls.
While, admittedly, that is also possible in the stock market, it is easier in Forex.what is forex market,Foreign Exchange Market
Why do you think that the earning potential of a Forex Trader is unlimited?
One of the reasons is leverage! Leverage is a provision by Forex brokers that allows Forex Market participants to open and control positions larger than the deposits in their trading accounts.
For example, a leverage offer of 100:1 will enable you to control positions worth $30,000 with just a $300 deposit. Isn’t that amazing?
Guaranteed Stop Loss
The Fx Market acquired its notorious reputation principally because of leverage. In fact, whenever people say it is too risky, it is because of that. However, the market also makes it possible for its participants to protect themselves and hedge risks.