Forex is a commonly used abbreviation for “foreign exchange”, and it is typically used to describe trading in the foreign exchange market by investors and speculators.
Traders are moving to Forex in astonishing numbers, it’s the online trading which is booming its popularity globally. The traditional stock and other markets are abandoning and FX traders are increasing. ETX Forex Trading is considered as the right Forex platform for new traders.
The Forex (Foreign Exchange) Market is the largest market in the world. It is the market where currencies are traded. Each day trillions of dollars are exchanged.
Factors like liquidity, interbank market, and the sheer size of the currency market are relevant for the institutional business and it has a significant meaning for the retail trader. When there is a difference in bid price and ask price it is called as spread betting.
Related: A Forex Guide for Newbies
These are a few of the many reasons why forex trading in a great option for you.
1. The FX trading is active and is done on worldwide in different business hours. The major currencies can be trade 24 hours per day only for 5 days and not on weekends.
2. There are no set times for exchange hours in a countries.
3. There are no limitations of long or short currencies.
4. Buying and selling can be done anytime irrespective of the hours.
5. Currency market is made of low and competitive spreads.
6. IT is easy to get in and come out of currency trading in the large size market.
7. Liquidity availability is deep and the leverage is high where in you can take advantage even with a small move. Not only is the forex market very liquid, it is also very efficient.
8. It is an easy way to gain exposure in foreign securities law in varied language.
9. No clearing fees, no government fees, no exchange fees.
10. Trading is direct with no middleman.
11. Low on transactions cost.
12. The participants in the single entity are huge that it doesn’t allow anyone to corner the market.
13. Low barriers to entry with a mini and micro trading accounts few with a minimum of $25 only.
14. Accessible by even average individual with a minimum trading capital.
15. Demo accounts are available for free to practise trading and also to build the skills. Real time currency market news and charting service is on 24*7.
16. It has a narrow focus, unlike stock and commodities which has variety of the options to choose and trade.
17. It revolves around 8 major currencies with no room for confusion with a clear picture of what is happening.
18. The enormous volume of daily trades makes it the most liquid market in the world.
19. Even banks do not have enough pull to really control the market for a long period of time, which makes it a great place for the decent player for a smart move.
20. The trading is simple in comparison to other trading platforms.