ADVANTAGES OF FOREX TRADING

1.     High Return

It seems difficult to find investments that offer a return on investment rate is high, even infinite except forex trading.

2.     High Liquidity

Liquidity in the forex trading is very high. That means you can always make sell and buy order without knowing the term of failed transaction. When you make a purchase of transaction then there is always a seller and vice versa.

3.     YOU CAN START WITH SMALL AMOUNT

With a capital of $ 100 you are able to do forex trading. Although this number is not a good and realistic amount for forex trading. But for the size of the study, the amount is sufficient. And you can find many brokers that offer mini account you are new to learn.

4.     24 HOURS & 5 DAYS MARKET

You can trade 24 hours per day from Monday to Friday, 5 days a week. Market always available from that time. Saturday and Sunday market was closed.

5.     ANYWHERE, ANYTIME, ANYBODY

An Investment doesn’t knowing economic level. Who you are its doesn’t matter, you can do forex trading as long as you have a capital to trade. Just set up your internet, open an account and then funding your account you already can do forex trading.

6.     Investors active in your investment

In forex, you are the owner, worker and investor itself. Because you have 100% control of your money. The transaction decided and taken by yourself with your own responsibility.

7.     YOU HAVE LEVERAGE FOR YOUR CAPITAL

Explanation

In forex, investors use leverage to profit from the fluctuations in exchange rates between two different countries. The leverage that is achievable in the forex market is one of the highest that investors can obtain. Leverage is a loan that is provided to an investor by the broker that is handling his or her forex account. When an investor decides to invest in the forex market, he or she must first open up a margin account with a broker. Usually, the amount of leverage provided is either 50:1, 100:1 or 200:1, depending on the broker and the size of the position the investor is trading. Standard trading is done on 100,000 units of currency, so for a trade of this size, the leverage provided is usually 50:1 or 100:1. Leverage of 200:1 is usually used for positions of $50,000 or less. 

To trade $100,000 of currency, with a margin of 1%, an investor will only have to deposit $1,000 into his or her margin account. The leverage provided on a trade like this is 100:1. Leverage of this size is significantly larger than the 2:1 leverage commonly provided on equities and the 15:1 leverage provided by the futures market. Although 100:1 leverage may seem extremely risky, the risk is significantly less when you consider that currency prices usually change by less than 1% during intraday trading. If currencies fluctuated as much as equities, brokers would not be able to provide as much leverage.

Although the ability to earn significant profits by using leverage is substantial, leverage can also work against investors. For example, if the currency underlying one of your trades moves in the opposite direction of what you believed would happen, leverage will greatly amplify the potential losses. To avoid such a catastrophe, forex traders usually implement a strict trading style that includes the use of stop and limit orders.

8.     ONLINE REPORT & TRANSACTION

You can get your transaction report anytime you want, no need to wait report from your broker. All you have to do is go into your personal area and see or download the detail.

Regards