Still Hesitant Forex Trading? This is 9+ Advantages of Forex that makes you think again
For those of you who are currently hesitant to trade on the forex market, it seems like the feeling of doubt that comes up must be immediately erased. In this discussion, we will review some of the advantages in the forex market. There are at least 9 advantages that you will get when trading in the forex market.
Let us consider the explanation below.
1. High Forex Liquidity
The forex market is the largest and most liquid financial market. Inside the forex market, the existing liquidity level reaches USD 5.3 trillion per day. This data represents a data released by the Bank of International Settlements which is the institution that oversees banks around the world.
Forex market liquidity is greater, when compared with stock exchanges in the United States. The high level of liquidity is what makes traders get a lot of convenience when transacting.
You can sell and buy foreign exchange at any time, because there will always be buyers and sellers in this market.
Whenever you want to sell, there will always be buyers. Likewise vice versa, whenever you want to buy, there will always be sellers.
2. Anyone Can Transact With Limited Capital
In the previous discussion, we already explained that in forex trading there is a system called margin and leverage. With this system brokers can lend funds in proportion to the guarantees provided by traders.
Likewise with the existence of leverage that allows you to open a trading position that is greater than the ability you have. For example like this, there is leverage 1: 100, then with this thing the traders only enough to deposit funds around USD 100 in order to transact with USD 10,000.
The above advantages are what allows traders to make transactions in the forex market with limited capital. Currently only with a capital of about USD 10 only, you can already transact in the forex market. What is more exciting again is there are some brokers who provide capital for the traders as a means of promotion.
3. ROI is Very High!
Trading on the forex market promises a huge profit if you are able to carry out this activity consistently and sustainably. However, do not think that forex can provide wealth in a short time, because this activity contains a very high risk that you need to be aware of.
4. Trading Non-Stop For 24 Hours
The next advantage that you will get when joining the forex market is trading time that can be done 24 hours non-stop. The forex market will open from 4 am on Mondays to Saturdays at 4 am.
With a relatively long time, you can trade in the forex market anytime adjust your time. You who have a regular job in the morning can trade in the forex market in the afternoon and evening.
5. Investment Decisions Are in Your Hands
If you invest in mutual funds, insurance, and deposits in this case there will be a third party who will manage the portfolio owned. This is very different from forex trading is done, because the decision is in your own hands. You are free to determine when to buy and sell foreign exchange owned and large investment will be done.
6. Real Time Prices
The forex market is an open market and can be known by anyone. With this, you can determine when you want to enter the forex market or exit the forex market.The gains and losses obtained will also be seen right away.
7. Demo Trading Facility That Can Be Utilized
If you are still hesitant and afraid to get the loss of forex trading is done, then you can try the demo trading provided by forex brokers. With this facility, you can play and practice forex trading before plunging directly using the original money.
8. Profitable Leverage of Traders
As we have discussed above, there is a leverage factor in forex trading that allows traders to transact with bigger money even though they only have small capital. If there is a 1: 100 leverage, then it means you can trade with 200 times the amount of money you have.
9. Secure and Secure Data
Forex trading is run by utilizing information technology called internet, so many people who doubt the security in transaction. Do not worry about this, because forex brokers provide data encryption that makes funds and transaction data secure from irresponsible parties.
If you are still hesitant to transact on the forex market, you can read other explanations that we have stated regarding how to choose a trusted forex broker.
Things You Should Watch When Trading in the Forex Market
As a wise trader you should understand forex from every aspect before starting to enter and trade. Forex market is a very volatile and volatile market, meaning that when trading in the forex market the money you have can be easily lost in just a matter of seconds.
The existing transactions in the forex market are very difficult to estimate and make transactions in this market very high.
In addition if you do intend to transact in the forex market, then you should prepare a good internet connection for the transaction goes smoothly without a hitch. It’s not impossible you can lose a lot of money in a very fast due to bad internet connection.
How interested in doing transactions in the forex market?
Hopefully the discussion we delivered above can provide many benefits for you who have read it.