Why Trade Forex?
Forex, or foreign exchange, trading involves trading different currencies. This market has several unique characteristics that make it especially attractive for traders. When deciding whether to start forex trading or not, it is useful to consider the following specifics of forex:
Forex is a global market comprised of 15 independent exchanges, each of which is open from Monday to Friday. For forex traders, the most important thing is that trading hours in the four main exchanges allow for 24-hour trading. Here are trading hours for the four major exchanges globally, EST:
– London: 3a.m. – 12p.m.;
– New York: 8a.m. – 5p.m.;
– Singapore: 3p.m. – 12a.m.;
– Tokyo: 7p.m. – 4a.m.
As it is seen from the trading hours, activity in two of the major exchanges can overlap creating even higher trading opportunities. Thus, for instance, from 8a.m. till 12p.m., when exchanges are open in both New York and London, traders benefit from increasing trading volumes and volatility.
The highest liquidity
An asset is called liquid when it can be quickly and easily converted into cash. In forex, high liquidity mainly derives from the enormous size of the market. Forex trading volume exceeds $5.2 trillion daily making it the largest financial market globally. It means that as a trader, you can easily buy or sell any currency with minimal price movement.
No entry barriers and low transaction costs
Forex trading is perfectly suitable for individual investors due to absence of entry barriers and low transaction costs. Unlike traders in other markets, forex traders can enter the market with relatively small investments. At Golden-fx, you can start with an investment as little as $250. Another benefit is absence of fees and commissions. Transaction costs are already built in the forex prices in the form of spreads, or differences between the buying and selling price.
The highest leverage with no costs
Forex traders are able to use leverage, i.e. to trade more money than they have in their accounts. It means that, for instance, if you have $1,000 in your account and 200:1 leverage available, you can trade $200,000 on the market. Forex brokers offer the highest leverages among all financial markets. In addition, unlike in stock market, forex traders do not actually borrow this money and therefore do not pay any interest.
Ability to capitalize both on falling and rising prices
The forex market provides traders with a possibility to profit both on falling and rising prices, while traders are free to involve in directional trading. Forex traders can get into a short or long position if they expect that the price will go up or down. It allows for higher flexibility and enables traders to earn profits regardless of the market conditions.
Technologically advanced marketplace
Forex market can boast about advanced technological infrastructure. Thanks to rapid development of online trading, forex traders can execute their trades in fractions of a second regardless of their physical location. Golden-fx offers access to industry-leading MT5 Application and MT5 Web platform ensuring almost instant execution, technological stability, and global reach.