lunes, 26 de octubre de 2015

Benefits of Forex Market

Liquidity - the Forex market is by far the most liquid market in the world with over 2 trillion daily volume according to the Bank of International Settlements.

24 hour market - It is said that the forex market revolves around the clock. This means you can open or close positions from Sunday at 5:00 PM EST when New Zealand begins operations until Friday at 5:00 PM EST when San Francisco ends operations.

Leverage - Trading in the Forex gives you the opportunity to have more purchasing power and / or offer other financial markets. This allows us to operate large amounts of money with a small margin deposit. Some brokers offer leverage up to 400: 1, can control a position of US $ 100,000 with only 25% or $ 250. This in turn allows us to maintain our risk capital to a minimum.
This feature is like a double-edged sword. If leverage is not used properly it can work as a disadvantage. As we use more leverage, more of our "venture capital" at risk there.

Low transaction costs - The forex market is considered one of the financial markets with lower operating costs. Most brokers charge based on the following two schemes:

  • Spread - The brokers charge a different price for the purchase and sale transactions, this difference is that the broker stays.
  • Spread and Commissions - Most brokers in this scheme charge a commission, but usually the spread is very small, so even transaction costs may be lower than the brokers that charge only spread.

The Minimum Capital Risk - To the forex market requires less capital risk than other markets. Incluse some brokers allow opening of accounts with $ 1 (yes, you read that right, just one dollar). On average, the minimum investment is usually $ 300.
Of course, we can not expect to make a fortune in the capital, but we can definitely serve to enter the world market without risking big money.

Operations Specialist - Market liquidity allows us to operate only some currencies, higher volume. About 85% of transactions occur in the seven major currencies listed above. This allows us to monitor, follow and know every detail best instrument.


Operate from wherever - The fact that the transactions have no physical place where all happen, we do operations anywhere in the world. We just need a phone or Internet connection where we can access the broker.


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