Surely if you clicked on this link then you are one who wishes to increase your emerging market exposure but you just can’t find a simple and effective way to invest. Or you just love the secure feeling and easy access to cash that you already get in this market but you feel you need a better average rate of return than you are scoring with the treasuries in this zero interest rate world.
With all of that being said and knowing that the Forex market is the largest financial marketplace in the world, it has also been known as the market that determines exchange rates. Although there have been many upgrades at several different levels in terms of trading and investing in the world of Forex. Once upon a time, what used to be a market dominated by all the major banks and investment firms is now the largest trading and investing community known to mankind.
Here are 7 reasons why Forex investing is the answer to everything:
You know you’re working right when you have the option to liquidate. Often traders are caught up in a position that they cannot get out from as they cannot liquidate. It is important while trading to be provided with sufficient liquidity that is required in order to be able to trade seamlessly. And it is this comfortable feeling of being in the position to trade seamlessly with the option of stepping down at any moment that makes the Forex market stand out the way it does.
The best part of being a Forex trader is that you have visibility into your account at all times, regardless of it is related to the futures or right on the spot market. Similarly, this proves the underlying structure remains the same no matter what, whether they have their accounts in their own names at a bank or futures commission merchant. Choice is always yours.
It is wiser to understand that if there is a bank open somewhere in the world, chances are that the Forex market is also open. The Forex market operates 24 hours a day, 5 days a week, with easy access to all your means of trading.
However, when referring to accessibility we are talking about the easy access to the market. In terms of Forex, you will never find a market in the traditional sense as there is no specific location where all of the trading or exchange takes place.
4. Controlling Ability
The key point here is leverage. For Forex traders, this means you have the ability to control a large amount of one currency using a tiny percentage of its true value.
But where there’s a benefit, there usually is a downside that follows. So the leverage in this case could work wonders for you as it creates greater opportunity to profit, but it can just as easily do enough damages to set you back from where you were.
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5. Carry Trade
In simple words, one must consider this to be a give and take as the transactions are quoted in pairs. You buy one currency while selling another. In order to put on a carry trade you have to start with buying a high interest currency against a low interest one. And as each day passes by that you are holding the trade, you earn the interest difference between the two currencies.
6. No Fixed Contract Size
There is no contract you sign that determines the order size preferred. During the trade of currencies, you can either exchange or head in for exchange over the counter (OTC). Access to this will offer you many benefits which also includes the lack of set order sizes.
7. No Commission
Other than the charges of establishing the spread if you are charged a commission or transaction fee, then someone somewhere is dealing you the wrong way. The cost of trading is specifically restricted to the spread between the buying and selling prices respectively. Although this has nothing to do with how the dealer chooses to deal with his customers and how he might charge them for the services he provides, as there are no set of rules to be followed no matter what.
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