Why Trade the Forex Market?
The Forex Market has increasingly become very popular over the years. Hence, it is appealing to question the incentive for this growing success. Before going into details what makes the Forex Market so fascinating to many online traders, let’s briefly revise what Forex is.
Forex, also known as the Forex market is the place where currencies are traded. The international need for companies, governments, and individuals to exchange currencies is the prime reason why it is recognized the largest, most liquid and most popular financial market in the globe.
Why do traders turn to this market?
The size of the market
The size of the Forex is a first fundamental answer. The Forex market is the largest financial market in the globe, with a trading volume of about 5 trillion dollars daily. As a result, no one or institution can manipulate or control the market for an extended period. This great figure undoubtedly represents an indisputable interest for traders looking for investment.
Leverage
The forex market possesses a distinctive feature. There is no obligation to acquire huge amounts of money to be able to negotiate. Thanks to the availability of large liquidity on the Forex market, you can trade with a lot of leverage (up to 100) allowing you to seize advantage of small movements in the market. The lever is a double edge sword; it can increase your profit and loss.
Market accessibility
The Forex market never sleeps, as opposed to all other markets. Currency exchange can be done at any time of the day, giving the forex trading a very available market status. This allows you to trade at your suitable time, e.g., morning in New York and the evening in Australia. Note, the forex market remains closed on weekends and holidays.
Market transparency
The transparency of a market is always a good condition when considering an investment. The fear of being startled by an event that would have erratic consequences in the market is not an excellent disposition to venture into the trading mode. The forex market offers this transparency; there are no surprises if you know how to analyze data. If you are confident of your analyzes, you can predict the market direction with a comparatively high accuracy rate.
No cancellation or suspension
Unlike equities, the forex market remains unstoppable, 24 hours a day, regardless of the lurking market conditions. In fact, whatever happens, you as a trader always have the opportunity to take a suitable position and possibly make a profit. In times of high volatility in the market the stock market may be suspended, to curb sensational price variations. These problems do not affect the forex market; 24 hours a day, 5 days a week currencies are constantly available.
International exhibition
As popularity increases globally, investors are seeking new and better opportunities to engage in global markets. Forex is a straightforward way to invest in another country, through currency trading which tenders you a route to translate that idea into a trade. You can easily stake on rising or falling of another country currency.
Stable price
Because a forex trade is made instantly, the chance to buy the currency at the desired price is higher compared to other markets, where your transaction stops in a period of one or two days, so there is a possibility that the price might change. This speed and stability attract numerous traders to the market. Hence, you have more control, and your money is not tied up for long periods.
At the end, why trade forex? Because forex trading offers the opportunity to acquire a bold style of life and activity that is worth it if you can study, understand the market and make profits. Even if there is a decline in currency value, it implies merely that another currency is rising elsewhere and there is a possibility of making profits. Unlimited freedom, potential, and a fair chance make the forex market an excellent option for everyone.