Thursday, January 14, 2010

FOREX Accessibility

The FOREX market is open 24 hours a day, 5 days a week. The FOREX market opens on Monday morning in Australia, and it closes on Friday afternoon in New York. FOREX trades can be made online, 24 hours a day, during this period. On the other hand, the stock market is only open for a few hours each day.
FOREX is more predictible than stocks. Stocks don't always follow predicted trends. They may drop when predicted to go up, or they may rise when predicted to drop. FOREX on the other hand follows well established economic trends.
Foreign exchange trading involves buying and selling different currencies. It works on the theory that is similar with share market. As we know that to make the profit, you have to buy at lower price and sell at higher price, or we can also sell at higher price first and buy at lower price. But its not as easy as it sounds. By studying certain market conditions, you can actually make profits in forex. All you have to do is to analyze the forex in a correct way and do the good trade.
Why to go for Foreign exchange trading? There is an option to invest in stock market also but here are a few important advantages of currency trading over stock market.
You are probably wondering what the other advantages of forex trading are. Actually, there are numerous benefits to trading in the forex market. First and foremost, you will never lack of any opportunity to make money in this trading business. You need not even worry about the downward spiral of the value of one currency. There is always another currency that is going up in value in which case you can direct your attention to trading currencies that are high in value.
Unlike stock trading where you would have to pay your broker a lot of money for all kinds of fees, forex trading does not require traders to pay commissions. You don't have to pay clearing fees, government fees, brokerage fees and so forth. The brokerage fees are paid using the bid-ask spread method. Although there are traders who are using brokers, the market does not really require a middleman. You can transact directly with anyone inside the market.
Smaller investments. A mini FOREX account can be set up for just a few hundred dollars, much smaller than the typical stock investment account. FOREX also allows much higher leverage, around 100:1. What this means, is that you can control assets worth 100 times your investment. For example, if you invest $500, you can buy or sell up to $50,000 in assets. In the stock market, the leverage may only be around 2:1.
FOREX has no commissions. There are no commissions for trading FOREX. This means you can buy and sell many times a day, and there will be no commissions to eat up your profits (or add to your losses).
These are just some of tahe advantages of the FOREX market over the stock market. If you want to learn more about FOREX, then you should look around, and learn more about FOREX investing. You can find FOREX brokers online, many of them offer a free practice account, so you can try your hand at FOREX trading without risking any money. So, take a look around, learn about FOREX investing, and give it a try.

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