The FOREX Market is one of the most attractive and unique markets worldwide. The following summarizes some of the many reasons why professional investors have flocked actively towards this market.
You can work from anywhere in the world:
Due to the fact that the market is available to every individual or corporate 24 hours a day, one can trade from anywhere in the world. With an Internet connection, and a laptop, computer or even WAP enabled cell phone you can trade easily with FOREX at your finger tips, with complete convenience of your home or office. That's why this market is called a convenient market.
The markets are open 24 hours a day:
Around the clock trading gives traders the opportunity to trade within any time zone around the globe. The currency market is a 24-hours market; therefore as a trader, this allows you to react to favorable/unfavorable events by trading immediately. It also gives traders the added flexibility of determining their trading day.
Largest & Most Lucrative market in the world:
If you add all the volume on all the stock exchanges in the world, it would still not get close to the volume on the FOREX market. Volume ensures that a trader can easily get rid of a position – if you want to buy, there will always be sellers and if you want to sell, there will always be buyers. Therefore, it is very easy to get rid of cash because everyone wants it, due to the vast number of investors in this market, and approximately 1.9Trillion US Dollars of trading volume a day.
Effective Execution:
Orders are executed and confirmed online or manually via a recorded phone call. Customers can know the rate immediately at which the order is executed. Confirmed orders will always receive a single price execution.
Limited Capital required to start and operate this business:
Unlike most other businesses, currency trading does not need extra money to grow your investment or substitute your business with cash to expand your new plans. You simply grow your investment or new plans by locking in profits from your trading account.
Margin System:
You can enjoy the benefits of leverage on contracts from ten to Five Hundred times of your margin deposit. That is, with 1% of the absolute value of MBCFX contracts, you can enter the largest marketplace in the world. As long as you are able to maintain your margin requirements on the full contract value, you can remain indefinitely in the market.
Maximum Liquidity:
Being the largest market in the world with over $1.9 Trillion bought and sold daily, huge volume of transactions are readily executed and cleared. Unlike futures or the stock market, there is never a lack of buyers or sellers. Therefore, it gives the investor the prerogative to open or close a position at will.
Ease of Mind:
There is no need to sit behind your computer for hours to keep track of your positions. You can simply put a stop loss or take profit order or even a buy or sell limit and let the system do the job for you.
Informative and Educative :
The true value of education on trading is: if you ever lost money while trading in the markets, you know how to make it back. This means that knowledge and experience gives you the edge, income, confidence, clear trading strategies and much more.
Lower Transaction Costs :
Executing trades electronically reduces manual effort, thereby lowering the costs of doing business. On-line brokers are then able to pass along the savings to their client base.
Real-Time Profit and Loss Analysis :
The fast-paced which is the nature of the FOREX market compels traders to execute multiple trades each day. It is vital for each client to have real-time information about their current position in order to make well-informed trading decisions.
Full access to market information :
Access to timely and relevant information is critical. Professional traders pay thousands of dollars each month for access to major information providers. However the very nature of the internet affords users free access to reliable market information from a variety of sources, including real-time price quotes, international news, government-issued economic indicators and reports, as well as subjective information such as expert commentary and analysis, trader chat forums etc.
Equal access to market information :
Professional traders and analysts in the equity market have a definitive competitive advantage by virtue of the fact that they have first access to important corporate information, such as earning estimates and press releases, before it is released to the general public. In contrast, in the FOREX market, pertinent information is equally accessible, ensuring that all market participants can take advantage of market-moving news as soon as it becomes available.
Profit potential in both rising and falling markets :
In every open FOREX position, an investor is long in one currency and short the other. A short position is one in which the trader sells a currency in anticipation that it will depreciate. This means that potential exists in a rising as well as a falling FX Market. Meaning traders could either sell or buy to enter the market.