Currency: Currency market trading income
Currency trading market has become very popular in recent years. Why is it that the world market for forex traders as an investment opportunity? In this article we will try to answer this question. In addition, stock and currency markets, described the differences between the futures markets.
Some advantages of forex trading in this market:
Superior liquidity.
Liquidity is what really makes the Forex market is different to other markets. Forex market by nearly a trillion dollars so far this 2 US Worked with the most liquid financial market in the world every day. This is to ensure price stability and the improved business performance. Open and close dealers to facilitate communication with them. Also, as long as a large amount of difficult to manipulate the market.
24-hour market.
It is also one of the biggest benefits of forex trading. Click on it and the market around, see 15.00 EST when New Zealand is opening on Sunday is at work and see 05,00 EST on Friday, when San Francisco started off on the market. Active traders time to time about whether there are zones of goods, trade of.
Harnessing trade.
Many other markets, currency exchange business, the large buying power allows. Some forex brokers offer 400:1 leverage for only 0.25% of total net interest margin is permitted to invest. As a result, 100:1 $ 100,000 in state business, the profit margin of only $ 1,000 in a state that is open with the help of state, ratio.
Lower transaction costs.
Almost all brokers offer commission free trading. Distributed to dealers by not only the cost of a transaction (buying and selling, the difference between each currency pair price) value. The pairs 1 pip (the minimum increment in any currency pair) of the spread is so low.
Low minimum investment.
Forex market trading in all markets other than the less capital is needed. As low as $ 300 dollar initial investment, real estate agent you can offer in terms of the levers. The lower level is a great advantage because the currency trader is able to maintain your own risk.
Special Business.
We monitor and finally, know each instrument better.
Company from any location.
If you have a lot of travel, the world can do business anywhere with an Internet connection.
Forex market and other markets, some of the most important differences are explained below.
Forex market vs. Equity markets
Liquidity
Currency Market: daily volume is close to two trillion dollars.
Stock market: 200 million dollars daily basis.
Trading Hours
Currency exchange market 24 hours a day, 5.5 days a week.
Equity markets: 8.30 bis 05.00 Monday to Friday, EST is an EST by the clock.
Potential benefits
Currency market: both the rising and falling markets.
Stock market: Most traders / investor profit from rising markets.
Transaction expenses
FX market is transmitted to the Commission and strict.
Stock market: High commissions and transaction costs.
Purchasing power
Currency market: to 400:1 leverage.
Stock Market: 04.01 bis 01.02 hours of use.
Expertise
FX market is the largest volume (85%) of major currencies (USD, EUR, JPY, GBP, CHF, CAD and AUD) are
Stock market: more than 40,000 stocks to choose.
Unlike the futures markets, forex markets
Liquidity
Currency Market: daily volume is close to two trillion dollars.
Futures market: Around 400 billion US $ Daily basis.
Transaction expenses
FX market is transmitted to the Commission and strict.
Futures market: High commissions fees.
Margin
Currency market: Fixed rate of margin on each situation.
In the futures market during the day-night conditions, such as margin status of the various levels.
Business Performance
Currency Market: immediate implementation.
Inconsistent enforcement of the futures market.
All foreign exchange market, most investors and education, discipline, commitment makes the area attractive to other market Trader.Wie, and much patience is required.
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