Why Traders Flock to Forex Trading

Fact: The forex market has become well-known worldwide, as a large number of traders are now moving in this market. Another fact: They jumped into forex because of the unexpected numbers it provides and benefits.

What kind of advantages and benefits does forex trading possess in the market, and how good are they to be able to reel in market players and traders?

Here are some highlights in forex trading for beginners:

  • Lower Entry

One of the reasons why traders are into forex trading is the much lower barrier to enter, unlike with the traditional financial markets. It allows you to keep a minimum amount of $25,000 in your account to trade in the stock market.

  • 24-hour Trading

As the market is open 24-hours a day, investors find it convenient to trade at anytime of the day or night, whether they worked with full time jobs.

  • No Commissions

Investors merely pay for bid/ask spread when entering the market. This spread is an essential cost of trading and can be wide at times. Generally, it is the only “mark up” from the dealer.

 

  • Liquidity

With the largest markets worldwide, the forex markets offer outstanding liquidity at any time of the trading day than other 24-hour markets. It only means that you can trade large amounts of volume with minimal market impact.

  • Leverage

Market participants can leverage up to 50 times their account value mostly on the major forex pairs, while it offers 20 to 1 margin in minor pairs. Keep in mind that these leverage amounts may vary at times.

  • Trading Opportunities

The forex market offers excellent opportunities to trade fundamental changes in economies worldwide. Changes and developments in the economy, which directly affect the currency pairs are observed in a monthly calendar of events. In major economies, most of its fundamental development involves significant market impacts during the release of data. GDP, employment rate, and interest rates are among the economic indicators that affect the market.

Get market insights and learn more forex strategies! Sign up now and attend our FREE webinar with our professional analyst Raad Aswani.

Leave a Reply

Your email address will not be published. Required fields are marked *