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.

What is Forex or Foreign Exchange?

Forex is an acronym of the term in English "Foreign Currency Exchange" and is also known as the FX market or the currency market. For starters, the foreign exchange market is the world's largest financial market. Every day four trillion dollars are traded in different currencies around the entire planet. This makes it the most liquid, attractive and lucrative market in the world. The exchange rate is constantly influenced by the major events of the world economy, but also by political events even external factors such as weather, natural disasters, and even terrorism.

As the Forex market works?

The FX market can buy and sell currencies so as to profit from the differences between exchange rates.

Foreign exchange transactions is very simple, since the procedures are basically the same as when operating in any financial market.

Investing in Forex is easy for anyone who has already participated in other markets. And for beginners there are also good opportunities to learn as operating in the currency market.

How to start trading Forex?

The first step that is recommended to start trading in the Forex is open a free account with a Forex broker.

  Most brokers allow you to open a practice account with money from practice or play money. Thus a person who wants to trade Forex can practice and develop their skills as an operator before opening an account with real money.

Those who feel ready to start trading in a real way should apply to open an account with a Forex broker.