To conduct foreign trade and business, currencies need to be exchanged. Forex is just the other name for foreign exchange. The term Forex Trading is simply the trading of currencies of a multitude of countries against each other. Though the main reasons for trading are commerce, tourism or trading there can be other distinguished reasons as well.
Trading Forex can be quite challenging at times and if you are no more than a beginner then the process can be quite daunting. But this shouldn’t be the case, knowing the basics of Forex, any beginner can make money in Forex trading. Here’s everything that you need to know about Forex Trading. Go through it!
What are the advantages of Forex Trading?
There is a bunch of reasons that can compel you to invest your time and money in Forex Trading. Here are just a few reasons why a majority of people are choosing this market. Have a look at some of them!
The market doesn’t sleep
Forex market is a 24-hour market that operates all over the world. You can take part in the trading process as the market opens in Australia on Sunday evening and finish trading before the market ends in New York on Friday.
Unless you decide to hire a trusted forex broker there is no chance that you will have to pay any extra fees like the clearing fees, exchange fees, government fees, etc. Even a vast majority of the forex brokers are compensated for the work they do through the procedure of “spread” so you don’t need to pay for them as well.
High liquidity and volatility
Forex trading allows you to convert cash quickly and transfer large amounts without any huge price discount so cash liquidity is an asset. You can rep large profits by speculating on price movements in the direction that you want. So cash volatility is also an asset in Forex trading that can significantly help you.
No fixed lot size and low transaction costs
Spread is the difference between the buying and the selling price and the cost of the transaction is built into this price in Forex. The spread can be as low as 0.07%. You can trade a wide range of currency pairs and there are no fixed slots as well. You can always determine your own portion size or lot and trade in that. Isn’t that amazing?
The bottom line
The market is largely decentralized and so no one can corner the market at any cost because it is made up of chunks. The best part about Forex trading is that you can Leverage and your money can go further. Rather than believing in some of the most common forex trading myths you can always try your hands on it and chances are there that you will earn big. It’s all about asking yourself to believe that is Forex Trading a scam or a tool to help you succeed and earn considerably huge profits