How To Start Trading The Forex Market? Part3

Start Trading The Forex Market? Part3 - More and more knowledgeable investors and entrepreneurs are diversifying their traditional investments like stocks, bonds & commodities with foreign currencies for the following reasons:

How To Start Trading The Forex Market? Part3


1. FOREX is the largest financial market in the world

With a daily trading volume of over $1.5 trillion, the FOREX spot market can absorb trading sizes that dwarf the capacity of other markets. In fact, when compared to the $50 billion daily equity market or the $30 billion futures market, it quickly becomes clear that this gives you, and millions of other FOREX traders, virtually unlimited liquidity and trading flexibility.

2. FOREX is a true 24-hour market

The FOREX market never sleeps. Trading positions can be entered and exited any time around the world, around the clock, 5.5 days a week. There is no waiting for the opening bell as in the case of stock trading. It is a 24-hour electronic currency exchange (ONLINE) that never closes. This is highly desirable for you if you want to trade on a part-time basis, as you can choose when you want to trade: morning, afternoon or evening.

3. There was never a Bear Market in FOREX

You can have access to unlimited currency exchange. Trading currencies in "pairs" (for example, US dollar vs. JPY (YEN) or US dollar vs. CHF (Swiss franc), one side of each currency pair (for example, USD/CHF) is constantly moving with respect to the other. , when you buy a certain currency, you are actually simultaneously selling another currency in a certain pair. As the market moves, one currency will increase in value against the other. Of course, it is up to you to choose the correct currency to go long ( you buy) or short (you sell).

4. High Leverage - Leverage up to 400:1

You are allowed to trade foreign currencies on a highly leveraged basis - up to 400 times your investment with Fenix ​​Capital Management, LLC and with several other brokers.

Standard 100,000- lots of US$ currency can be traded with a margin of as little as 0.25%, or $250.

Mini FX accounts are allowed to trade with a margin of only 0.25%, that is, only $25 allows you to control a currency position of 10,000 units.

Futures traders, who are accustomed to margin requirements which are generally equivalent to 5-7%-8% of the contract value, will quickly realize that the FOREX market provides much greater leverage, and for stock traders, who must post at least 50% margin, do not. no comparison. If you are looking for an efficient use of trading, trade the Forex Market.

5. Price Movements May Be Highly Predictable

Currency prices in the FX market generally repeat in relatively predictable cycles, creating trends. The strong trend that foreign currencies develop is a significant advantage for traders using "technical" methods and strategies.

Unlike stocks, currencies have a tendency to develop strong trends. More than 80% of the volume is speculative and, as a result, the market often overshoots and then corrects itself. As a technically trained trader, you can easily identify new trends and breakouts, to enter and exit positions.

6. YOU pay no commissions or fees to trade FOREX

When you trade FOREX, through Fenix ​​Capital Management LLC (FCM) you can do it FREE with no commissions and fees, regardless of your account size.

Fenix ​​Capital Management LLC, requires a very low minimum amount to open a brokerage account, only US$200 and they charge no commissions or fees to trade or maintain an account, regardless of your account balance or trading volume.

7. YOU don't have to pay any trading fees or exchange fees

None of the usual fees, which futures and equity traders usually pay:

NO exchange or clearing fees,

NO NFA or SEC fees.

Because trading currencies over-the-counter (OTC), via a global electronic network, on FOREX, what you see on your trading screen, is what you get, allowing you to make quick decisions about your trades without having to worry or factor in fees. which may affect your profit/loss or slippage.

In the equity and commodity markets, you have to pay commissions and exchange fees. The over-the-counter FX market structure eliminates exchange and clearing fees, which in turn lowers transaction costs.

8. HOW do Forex brokers make money if they don't charge commissions?

Like all traded financial products, over-the-counter currency trading involves a bid/ask spread, which represents the price your partner is willing to trade at. Your broker will receive a share of this bid/ask spread.

Since the currency market offers round-the-clock liquidity, you receive tight and competitive spreads both intra-day and night. Stock traders can be more susceptible to liquidity risk and usually accept wider trading spreads, especially during after-hours trading.

9. Market Transparency

Market transparency is highly desirable in any trading environment. The greater the transparency of the market, the more efficient the market becomes. Unlike other markets where transparency is compromised (as in many recent scandals), the FOREX market is highly transparent (that is, analyzing countries, and having access to real-time research/news, is easier than analyzing companies).

Due to this transparency, as an FX trader, you will be able to implement risk management strategies according to your fundamental and technical indicators.

10. Instant Order Execution

The FX market offers the highest level of market transparency of all financial markets. Because of this, order execution and fill confirmation usually occur in just 1-2 seconds.

At Forex, order execution is completely electronic and since you will be trading via an Internet-based platform, instant execution becomes routine.

No exchanges, no traditional open-outcry pits, no floor brokers, and consequently, no delays.(to be continued )

That's How To Start Trading The Forex Market? Part3


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