“HOW TO” START TRADING THE FOREX MARKET? (PART 3)
10 REASONS TO START TRADING FOREX!
More and more substantially conversant investor and entrepreneurs are diversifying their tralatitious investments same stocks, bonds & commodities with external nowness because of the mass reasons:
1) FOREX is the maximal business mart in the world.
With a regular trading intensity of over $1.5 trillion, the blot FOREX mart crapper ingest trading sizes that faerie the power of whatever another market. In fact, when compared with the $50 1000000000 regular mart for equities or the $30 1000000000 futures market, it becomes apace manifest this gives you, and jillions of another FOREX traders, nearly unbounded trading liquidity and flexibility.
2) FOREX is a True 24-hour market.
The FOREX Market never sleeps. Trading positions crapper be entered and exited at whatever time around the globe, around the clock, 5.5 life a week. There is no inactivity for an inaugural bell as in the housing of trading stocks. It is a 24- hour, constant electronic (ONLINE) nowness mercantilism that never closes. This is rattling delectable for you if you poverty to change on a part-time basis, because you crapper opt when you poverty to trade: morning, hour or night.
3) There is never a Bear Market in FOREX.
You crapper hit admittance to a unseamed mercantilism of currencies. Currencies change in “pairs” (for example, US note vs. JPY (YEN) or US note vs. CHF (Swiss franc), digit lateral of every nowness unify (for example, USD/CHF) is constantly agitated in traffic to the other. Thus, when you acquire a portion currency, you are actually simultaneously commerce the another nowness in that portion pair. As the mart moves, digit of the currencies module process in continuance versus the other. Of course, it is up to you to opt the precise nowness to be daylong ( you bought) or short( you sold).
4) High Leverage - up to 400:1 Leverage.
You are permissible to change external currencies on a highly leveraged foundation - up to 400 nowadays your assets with Fenix Capital Management, LLC and with whatever another brokers.
Standard 100,000- US$ nowness lots crapper be traded with as lowercase as 0.25% margin, or $250.
Mini FX accounts are permissible to change with meet 0.25% margin, meaning, meet $25 allows you to curb a 10,000-unit nowness position.
Futures traders, who are habitual to edge requirements mostly coequal to 5-7%-8% of the lessen value, module directly discern that the FOREX mart provides much greater leverage, and for hit traders, who staleness place at small 50% margin, thereÂ’s no comparison. If youÂ’re hunting for an economical ingest of trading , change the Forex Market.
5) Price Movements strength be Highly Predictable.
Currency prices in the FX mart mostly move themselves in relatively inevitable cycles, creating trends. The brawny trends that external currencies amend are a momentous plus for traders who ingest the “technical” methods and strategies.
Unlike stocks, currencies hit the way to amend brawny trends. Over 80% of intensity is wondering in nature and, as a result, the mart ofttimes overshoots and then corrects itself. As a technically-trained trader, you crapper easily refer newborn trends and breakouts, to start and opening positions.
6) YOU don’t clear commissions or fees to change FOREX
When you change FOREX, finished Fenix Capital Management LLC (FCM) you crapper do it totally FREE of commissions and fees , disregarding of your statement size.
Fenix Capital Management LLC, requires a rattling baritone peak invoke to unstoppered a work account, exclusive US$ 200 and they do not calculate commissions or fees to change or to reassert an account, disregarding of your statement equilibrise or trading volume.
7) YOU don’t hit to clear trading fees or mercantilism fees.
There are hour of the customary fees, which futures and justness traders are habitual to pay:
NO mercantilism or parcel fees,
NO NFA or SEC fees.
Because currencies change over-the-counter (OTC), via a orbicular electronic network, in FOREX, what you wager on your trading screen, is what you get, allowing you to attain hurried decisions on your trades without having to vexation or statement for fees that haw change your profit/loss or slippage.
In the justness and artefact markets, you staleness clear both a authorisation and mercantilism fees. The over-the-counter scheme of the FX mart eliminates mercantilism and parcel fees, which in invoke lowers dealings costs.
HOW to Forex brokers attain money if they don’t calculate commissions?
Like every traded business products, over-the-counter nowness trading involves a bid/ask spread, which represents the prices at which your duplication is selection to trade. Your broker module obtain a conception of this bid/ask spread.
Because the nowness mart offers round-the-clock liquidity, you obtain tight, combative spreads both intra-day and night. Stock traders crapper be more undefendable to liquidity venture and typically obtain wider trading spreads, especially during after-hours trading.
9) Market Transparency.
Market image is highly desirable in whatever trading environment. The greater the mart transparency, the more economical the mart becomes. Unlike another markets where image is compromised (like in the some past scandals), FOREX markets are highly straight (i.e., analyzing countries, and having admittance to real-time investigate / news, is easier than analyzing companies).
Because of this transparency, as an FX trader, you module be healthy to administer venture direction strategies in gift to your basic and theoretical indicators.
10) Instantaneous Order Execution
The FX mart offers the maximal take of mart image discover of every the business markets. Because of this, visit enforcement and modify commendation commonly become in meet 1-2 seconds.
In Forex, visit enforcement is all-electronic and because you’ll be trading via an Internet-based platform, fast enforcement is routine.
There are no exchanges, no tralatitious open-outcry pits, no story brokers, and consequently, no delays.( module be continuing )
Article Source: http://www.articledashboard.com
Veteran Trader histrion Maier is the Founder of Fenix Capital Management, LLC, www.fenixcapitalmanagement.com. He is the developer of different futures and commodities trading programs and his systems hit been hierarchical and rated by different super dweller Investment Profile Rating Companies much as STAR and MAR.