The
Forex or currency market is a market in which currencies are traded and it is
the largest and most liquid market in the world with an average traded value
that exceeds $5 trillion per day. The Forex market includes all of the
currencies in the world.
According
to forex professional Carmelo Cerrelli, there are many benefits of trading Forex.
Market Size
The
Forex market is the largest financial market in the world.
Ease of Entry
You
can get started in the currency market with a small account as well. You don’t
need tons of money to start making great returns on your investments, also
anyone can take advantage of the benefits of the currency market.
Profit Potential
The currency
market has plenty of profit potential. You can make money in the currency
market whether currencies are going up or down.
24 Hour Market
Forex
trading operates 24 hours a day, five days a week. Since the Forex market is
worldwide, you can trade Forex as long as there is a market open somewhere in
the world.
High Liquidity
Due
to the substantial size of Forex market, it is also extremely liquid. Liquidity
is the ability of an asset to be converted into cash quickly and without any
price discount. In Forex, liquidity is high which means you can move large
amounts of money into and out of foreign currency with minimal price movement.
Low Transaction Cost
In Forex,
typically the cost for a transaction is built into the price. It is called the
spread, which is the difference between the buying and selling price.
Increased Leverage
Forex
brokers allow traders to trade the market using leverage, which is the ability
to trade more money on the currency market than what is actually in the trader’s
account. It gives the trader the ability to make nice profits while at the same
time keeping the risk capital to a minimum.
Profit Potential
In Forex,
there is no restrictions for directional trading, this means if you think a
currency pair is going to increase in value you can buy it or go long. In the
same way, if you think a currency pair could decrease in value you can sell it or
go short.
Can be Your Side Earning
Forex
trading can be done personally on brokers and this can be your side earning
source.
No Commissions
When you trade currencies, you never have to pay a
sales commission.
