The Reasons For Becoming A Forex Traders

Foreign currency exchange market investors are currently offering many advantages. So many
forex traders scattered everywhere throughout this hemisphere. Not without reason, myself included them and also (in the future perhaps you) would have to have at least 5 reasons why we want to become world currency trader.

A Market Is Never Close

Many of the trading market in the world, located at the site and continue to operate within strict trading hours, often limited to only five or six hours a day between Monday and Friday .. However, the Forex market is open 24 hours a day.

This means that the merchant does not only take advantage of international events, but they also have the ability to set their own trading hours. If you prefer to work in the morning because it has a particular job, it does not matter, you can trade forex in the evening. Or vice versa. You can trade forex in the day when you have a busy work at night. Bottom line, you can choose to trade day, late at night or even in the middle of the night if you want.

Low Cost Trading

In many markets, like the stock market, traders do not only need to pay the spread (the difference between the buy and sell price of the stock), but also have to pay a commission to the broker the commission is usually small trades can be around $ 20 and this can be increased rapidly to more from $ 100 for a larger trade.

Since the foreign currency exchange market is an electronic market entirely eliminated many traditional trade costs and you can maximize your trading capital. Capital may adjust your economic circumstances. But the broker has set up a micro account and standard account. Where to micro account for you which is relatively small in the ability to invest in the forex accounts (ie under $ 100). While the standard account over it or use substantial funds. In addition, the highly liquid (liquid) from the global currency exchange market. So can profit easily thawed and directly transferred to the account belongs to us (LOCAL BANK).

Ability To Trade On High Leverage

In most of the markets in which a trader has the opportunity to trade on leverage offered is often very low. In the case of the stock market, for example, equity professional day traders will typically operate at about ten times leverage their capital. In the Forex market the contrary it is quite common to find that traders are permitted to trade one hundred and two hundred times their capital.

A downside of high leverage is that it can certainly lead to high losses and high profits. However, the foreign currency market, risk management so tightly controlled.

Real Time

Currency trading transactions immediately executed in real-time by using the price at which the company will buy or sell the currency quoted. In almost all cases, this means that the price you see and the price you pay is the same.

It is not often the case in other markets where there are quite often put a delay between the command and the command was executed during which time the price will often move against you.

Two Opportunities To Profit

Equity markets go up and down following the trend (cycling between Bull and Bear markets), but cycling the Forex market does not experience this from the structural bias in the market.

World currency trading always involves two currencies, so if you are disappointed in one currency then you go up on the other side. Therefore there is always the potential to make a profit whether the market goes up or down.

We can gain an advantage in trade, whether the market is up or going down. His way is by analyzing a currency pair which will naek or down, and take the difference of his trade.
If you believe the currency will be stronger (up) please make buy position, and wait for the price to rise, do closed (sell) when the currency exceeds the price of your purchase before.

If you believe the currency will weaken (down) do sell position, wait for price drops, do closed (buy) when the currency was under selling price you earlier.

As the example is this:
Opening of Euro 1.1750 / 1.1753, the euro will analyze your kid into position 1.1770/1.1767, then open a position when the price buy it (then you buy at position 1.1753), and when the position changed to 1.1770/1.1773, do the closed position / sell currency (in the position 1.1770)
Then you can profit in two occasions.