Forex market is the place where the most profitable traders inhabit, as also the greatest financial market in the world.
If you are in it, you may know the story of Georges Soros, and how he earned billions of pounds sterling, by bankrupting the England’s Bank. Soros is an iconic forex trader and he knows the benefitsand advantages to being a forex trader.
Forex is the most traded market in the world. That’s the main reason that you should consider to become in a professional trader. However, you have to understand how it works and how totake profit from it.
Forex is the most volatile and more liquidmarket in the world, for it is the home to the Central Banks and the FederalReserve. Every decision, made by these institutions directly affects theforeign exchange market and the price action.
In this post you'll know the advantage ofbeing a forex trader, and how to take it.
Forex market has an essential advantagewhich is the possibility to trade 24 hours long. Forex market, hasn't thestrict schedule as the New York Stock Exchange, it is a more accessible marketto all traders around the world.
Trading hours start from Australia’smorning time and close in the US hours, so forex market never closes.
This 24/5 markets open means flexibilityfor your trading plan. No matter, the part of the world from you does trading,you can adapt your system to your daily lifestyle.
Forex market fees cost are cheaper thanother financial markets. Indeed, forex market is a low-cost place when comparedwith Stock market. This advantage is great primarily when you want to starttrading with a low capital.
Low fees costs exist due to the mainreserves that are a spread within forex brokers themselves in order to managethe risks in every position. This means that the position has two prices, a bidand an ask price. The difference between them is the broker's gain.
Leverage is a trader's secret tool to getinto the forex market when necessary. A Forex trader can take profit from smallvariations into currencies pair prices, and win or lose money by strategicallyusing the leverage.
Leverage represents risks which means apotential loss of your money, therefore it’s necessary to understand how itworks. This is important when you have a negative performance and need tomanage the risk in a particular position.
If you want to make profit from a tradingpath, you need the leverage, but don't expose your account with a high leverageas 1:2000. This kind of risk will make the market to never pay you. This isparticularly true if you have low capital.
So, we recommend a leverage up to 1:200,and if you are new into this profession, take the low leverage offer by yourbroker.
Finally, these 3 advantages put the forextrading as a great market where you can begin trading and learning how thefinancial markets work.
What other advantage do you know? Let me acomment below.