For traders who are interested in Forex, there are many advantaes that presents itself. You can take advantage of this advantages and get the best fortune out of Forex. The advantages includes:
1. Liquidity
In the Forex Exchange market today, you can be sure to get both buyers and sellers at any time of the trade.
The trade volumes that Forex makes on a daily basis surpasses the volumes of any other financial market. Liquidity for the simple man is the ability to close or open a trade position at any time of your choice. This advantage is very beneficial to all investors because you don't get stuck in a trade position. You can choose to close or open your trade position 24 a day.
2. Access
There is absolute accessibility to Forex as from 6.00 P.M. on Sunday to around 4.00 P.M. on Friday. All through these days you get a 24 hours service.
There could be fast reactions to news from Forex informations, instead of waiting for the break of the day when infact many traders have the informations already. With access to these informations, Forex traders take the opportunity of making money from the news or informations about the exchange rates of currencies, before they are brought to the general public for anouncement.
The 24 hours accessibility gives rises to Forex traders to be able to open or close trade positions based on informations at any time of the day. In the different time zones of the world, there are Forex dealers who are ready to give quotes of buy and sell.
3. Two-Way Market
Forex is a two-way market in that currencies are exchanged or traded in pairs. Examples are US Dollar/Japanese Yen, US Dollar/Swiss Franc, Great Britain Pounds/US Dollars, etc. Every trade constitute of the buying of one and the selling of the other currency. If at a point a trader believes the US Dollars will appreciate against the Japanese Yen, he can decide to buy more US Dollars and sell whenever he feels he has made his profits.
Again, another trader migh believe that the US Dollars will depreciate against the Japanese Yen, he can decide to sell more of US Dollars for the Japanese Yen. You can decide to sell a currency pair if you think the pair is going to depreciate against the base currency, or buy if you think it will appreciate against the base currency. This means that profits in Forex can be made when the market is moving up, or when it is moving down.
Post a Comment