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Monday, August 24, 2009

Advantages of trading the Forex Market

• High Leverage (low margin): Generally forex brokerage service providers offer a
leverage of 100:1. This means for every $1,000 you place in your account you have
access to trade with $100,000 worth of contracts.
The traders can utilize a small amount of funds in order to take a large position. If you
should happen to incur a loss, your broker will close your posit position when the loss
ion equals the balance in your account.
• Liquidity: The forex market trades between $1.5 and $2 trillion daily. The market
orders are almost filled instantaneously and the market is too l large for any one to
arge control.
• 24 Hour trading: The forex market operates 24 hours a day from Monday morning
Sydney – Australia time to Friday evening New York (EST) time. Therefore traders
have immediate access to information, their accounts and transac transaction ability without
tion after hours price fluctuation vulnerability.
• Trade both sides of the market: You can profit from price movements in either
direction, whether prices are going up or down. You can profit i in a bear or a bull
n market and the economy of any country is irrelevant to make prof profits. its.
• Low trading costs: Forex brokers will only charge you for the difference of a buy a and nd
sell price quote. There are no commissions or other charges pay payable buy the trader

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