The Advantages of the FX - Foreign Currency Market

[TracyL]

What are the advantages of the trading on the Forex Market? The Forex or Foreign Currency Market has many advantages over other types of investments.

1.The Forex market is open 24 hrs a day, unlike the regular stock markets.

2.Getting started as a, Forex traders doesn't require a great amount of capital. Other investment markets require a substantial amount of capital before you can take advantage of an investment opportunity. A good starting point for anyone that is entering the FX market is a mini account. The mini forex allows you open an account that is at a reduced amount. It requires a smaller capital compared to regular forex accounts, a minimum of $300. With mini forex trading, you can control a $10,000 currency position. The key here is leverage.

3.The Forex market is a very liquid market. As a Forex trader you have full control of your capital. With other types of investments, your money is held up for long periods of time. The advantage of Forex trading is your funding can be liquidated very quickly. Access to you capital is easy.

4.Forex traders can be profitable in bullish or bearish market conditions. Stock market traders need stock prices to rise in order to take a profit. Forex traders can make a profit during up trends and downtrends. Forex trading like any other investment has a certain amount of risk. To be a success FX trader you must develop a system, have good money management skills and possess self-discipline.

5. Forex market welcomes traders 24 hours a day. Forex market opens on Sunday 5 pm EST 10:00 pm GMT, closes on Friday 5 pm EST 10:00 pm GMT. The Forex market can be traded anywhere. As long as you have access to a computer, you have the ability to trade. Before jumping into trading currencies, is it wise to open a demo account. A demo account will allow you to download a trading station and practice real time trading with fake money. There are also many Forex courses and software application available on the internet. Remember to trade responsible and don't risk more than you are willing to lose.