The foreign exchange market (Forex) focuses on currency speculation and arbitrage. As such one of its first benefits is its accessibility by all. Currency speculation does not require a big initial investment as brokers offer Forex margin trading (trading with leverage). The costs can be easily calculated by the spread and overnight interest in case of holding positions overnight and commissions if any apply.
One of its biggest advantages, is its intangible and continuous nature. In terms of market developement this means fast and realiable means of communication and information are needed so that traders may, at any time and from everywhere (eg. home) be able to place his trades and speculate on the forex market. The market is open continuously because of different time zones coverage (some of the overlap) and operations are increasingly automated, so the role of operators tend to minimize over time.
There are endless opportunities to earn good returns if you do your homework. The risk of loss can be controlled with different tools and the market's high liquidity offers good conditions for every market actor. There are management tools available to restrict yourself from suffering huge losses and at the same time lock profit or realize it if the currency touches the desired mark.
Virtually nowhere else traders can go short, long, reverse positions and/or hedge them so quickly and easily than in the forex market.
All these features have made forex trading more joyful than ever.
Enjoy it!
AB
hi, i agree with you. I love the flexibility.
ReplyDeletergds,
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