Why should you trade Foreign Currency instead of stocks, options, futures or contracts for difference (CFD’s)?
The first and perhaps most compelling reason is simple – Volume! Latest statistics show that more than $1.5 trillion USD is being traded every single weekday, with the exception of public holidays. The foreign exchange market has over the last thirty years managed to become the world’s largest financial market. With the large minimum deal sizes, usually $100 000.00 and upwards, allied to rigid financial requirements, Forex was until recently largely unexplored by the individual investor. The advent of leverage has allowed the average investor to engage in Forex trading and take advantage of some of the opportunities that Forex trading has allowed:
Twenty four hour trading
Forex allows its traders to trade around the clock. A Forex trader can buy or sell 24 hours a day from the open of the Asian session on Sunday GMT to the close of the New York session on Friday evening. This way traders can take opportunities at their convenience, according to their own schedule, using market volatility created by important financial news releases > forex trading system
Very high levels of liquidity
High liquidity is definately a major attractant to the individual and institutional investor alike. Almost 90% of all forex transactions target the 7 major currency pairs, EUR (Euro), GBP (British Pound), USD (US Dollar), Yen (Japanese Yen), CAD (Canadian Dollar), NZD (New Zealand Dollar) and AUD (Australian Dollar). This liquidity is provided by international banks offering cash flow to investors, companies and market players which in turn helps these currencies to display high levels of liquidity, narrow spreads , price stability and smooth trends.
“Commission Free” trading
With “Commission Free” trading, Forex trading online lets the trader keep 100% of his/her trading profits. While this makes Forex trading very attractive as an investment opportunity, the potential investor should not be fooled into thinking that there are no costs involved > forex brokers recoup their costs and make a profit via the “spread”.
Regular trading opportunities
The Forex market is constantly moving, 5 ½ days a week, so traders can safely operate in a rising or falling market. There are always trading opportunities, one currency pair is always rising or falling in relation to another currency pair, which means that profits can be made buying when a pair is excepted to rise or selling when a pair is expected to fall, 24 hours a day, 5.5 days a week. This allows investors incredible flexibility to trade anytime they want to, full or part time, private or institutional > profitable forex system
Electronic trading
Most transactions are conducted within a few seconds, some almost instantaneously, depending on the speed of the internet connection and whether or not the Forex broker offers a “no dealing desk” that allows the transaction to be processed directly by the executing bank.
To Be Continued ….. > forex system mt4




