Thursday, 11 September 2008

ForexGen | What Are the Advantages of trading forex ?

1) High liquidity
(i.e. an opportunity of reception under the transaction of money, instead of the goods).
The market on which money are assets, have highest of all possible liquidities.
This circumstance is powerful attractive force for any investor since it provides to him freedom to open and close a position of any volume.
2) Efficiency
(a 24-hour market). The main advantage of the Forex market over the stock market and other exchange-traded instruments is that the Forex market is a true 24-hour market.
Whether it's 6pm or 6am, somewhere in the world there are always buyers and sellers actively trading Forex so that investors can respond to breaking news immediately.
3) Cost. Forex market
traditionally has no commission charges, except for a natural market difference (spread) between the prices of a supply and demand.
4) Avoiding instability problems.
Because of high liquidity of the market the sale of practically unlimited lot can be executed on a uniform market price.
5) The margin size
The size of credit "shoulder" (margin) in Forex market is defined only by the agreement between the client and that bank or broker firm which provides to him an output on the market, and makes 1:33, 1:50 or 1:100, for example.
On Forex market the traditional size of "shoulder" 1:100, i.e., having brought the mortgage in 1000 dollars, the client can make transactions for the sum, equivalent 100 thousand dollars.

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