Trading is definitely a land of mystery. Luck, chances, patience, it’s a mastery of all these factors that will help you win a game at trading. Some compare markets to an ocean and the trader to a surfer. Only a talented surfer can get his way out from there.
Forex Trading is the exchange of currencies. It’s the largest market in the world when you consider the volume of trading. So, is it beneficial enough to jump into these deep waters? Let’s find out.Click here.
How’s it Different?
- No Troublesome Middlemen
You do not have to deal with any nagging brokers to have a good trade. You can trade directly with the market responsible for the exact currency pair.
- Never sleeping Market
There is never a Kick-off Whistle that starts this game. Forex Market is worldwide. At any given time, a market will be open somewhere in this world. So the trading kicks off when the Australian Market opens up on a Sunday evening and only ends when the New York Market shuts down on Friday. This implies you can trade whenever you want. Morning, noon, night, the market is waiting 24*7.
With so many players from around the globe, no single participant can ever change the game or dominate over here. No one can control the market price for long periods of time.
- High Liquidity
Forex can move huge amounts of money in and out of foreign currency with only a small price movement. Consider the normal market conditions; it’s as simple as a click of the mouse to buy/sell and keep the trade moving. With such a large number of players, this game can never get stuck. When one door closes, another potential buyer/seller opens up from somewhere else.
- Anyone Can Play this game
Many trading platforms offer tiny trade accounts which can start from maybe a 100 EUR, which means you needn’t have a ton of money to start Forex.
- Sneak up the profit
If you feel like a particular currency pair value is going to rise up or go down, you can buy/sell it accordingly. There is no other directing force here.
- The Concept of Leverage
Small deposits here control a relatively larger total contract value. You are thus able to make better profits while keeping the risk capital low. Or we can say that you can play safe if you want.
Say if you are an investor having an overseas bond investment and want to reduce its interest-rate risks. t would be wise if you buy the currency of that country as usually when rates go up, the currency strengthens.
Forex Trading is somewhat like gambling. Its wild pace can leave you amazed. You can blow up your entire bank account if you don’t tread carefully. But once you learn the waters, it sure can be profitable.
So the keynote is…Proceed With Caution.