So now you asking yourself why I should trade FX and the answer is simple; because you can! The FX market is the only financial market that you can trade 24/6, for a reasonably small investment, and profit almost instantly!
The Forex, FX market has not only provided an investor with the ability to trade anytime, anywhere but also with small investments. The advantages of the Forex, FX markets are simple,
2) No commissions
The Forex, FX market is open 24/6, which gives the investor endless trading opportunities and generally no limitations of time. It’s also the largest financial market as mentioned which subsequently gives the investor endless information online (education, information etc.) which is a plus!
Being a leveraged financial instrument an investor is able to tap into this to maximize profits and at the same time make the most of the market movements without having to hold the full value of the underlying asset.
Let’s look at an example where 100:1 leverage is used:
Investor deposits $1000 into a trading account; with the leverage the client is able to open a trade of up to $100,000. The market moves in your favor by 1% and you have just made yourself a profit of $1000!
The Forex, FX Market is one of the only markets in the world where trading is commission free (ECN excluded). You only pay the spread (difference between the bid/ ask price or buy/ sell price). This makes for the cheapest form of financial investment and without commissions and extra costs you can “pocket” more!
Just about anyone can trade Forex, FX- if you are over the age of 18 and have a computer and internet access you are on your way to trading success. With some education, practice and a good broker you can profit from just about any day on the market.
The Forex, Foreign exchange, FX, are all abbreviations for the same thing, the Forex, FX Market. The Forex Market has been around since the day the first currencies were “floated” rather than having a set value as per the Bretton Woods Accord set in place to help stabilize the world’s economies after WW2.
Since then money has been exchanged for goods, and accordingly valued as per supply and demand and hence determined the strength of each individual countries economy. Many banks, corporations, governments and highly wealthy individuals started trading, holding, and exchanging physical currencies after noticing that the value of each currency varied and could not only strengthen but also weaken.
For many years following, the market was reserved for banks, corporations, governments and highly wealthy individuals because for one to trade required large amounts of money. With the global “internet boom “the Forex, FX market took a different turn for the best, and the online Forex, FX Market was born. Now just about anyone can trade FX.
PS: the only other “market” larger than the FX market happens to be the illegal drug market…
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