Forex trading may be difficult for some traders, but it’s also very lucrative. It can let you earn so much money if you know how to ride the tide and do it properly. If you’re up for the challenge, here are the things that you stand to get if you decide to make forex trading your career.
Cheaper Costs
If you decide to trade in the forex spot market, you would usually not have to suffer clearing fees. You only have to pay minimal government taxes, brokerage fees, no exchange fees, and little to no commissions at all.
This means that you can enjoy your money and gains for yourself more than you spend them for charges and fees. Meanwhile, retail forex brokers earns their keep from the bid and ask spread. They may also earn from swap charges.
No Middlemen
Long ago, you had to meet up with middlemen first and go a lot of lengthy processes before you can start investing in the forex market. In addition, you had to be quite well off before you can even afford to talk to such middlemen.
Nowadays, however, you can trade directly with the market, which then effectively decides the pricing of a specific currency pair.
No fixed lot size
The sport currency markets have to fixed lot size for trading. In most cases, brokers give you some choices if you want to buy more than one lot size. You can choose to buy a standard lot size, mini lot, micro, or even nano lots from the brokers who offer them.
24/5 Market
The forex market is open 24 hours a day for 5 days each week. It’s open from Monday morning in the Australian session to the afternoon close of the New York session.
Basically, there are some overlaps in the schedules of the biggest currency exchanges in the world, making it possible to have a seamless, continuous forex trading session. This is very advantageous for traders who are very conscious when it comes to their schedules. You can either trade full-time or part-time, depending on what floats your boat.
Little to zero chance of market manipulation
According to estimates, the whole forex market costs an amount that exceeds 5.1 trillion dollars. It also has very staggeringly large number of participants.
This means that it’s near-impossible for one entity to take control of the market or manipulate it for an extended period of time.
Highest Liquidity
The forex market is extremely liquid. In fact, it is hailed to be the most liquid market among all the financial markets. Under favourable market conditions, you can buy and sell currencies as immediately as you want to.
Further, high liquidity helps you to place large orders that can be executed without influence to the currency exchange price too much.
Short selling
The forex market imposes no restriction when it comes to short selling currencies. In fact, this is a very acceptable form of strategy in the forex market.
You can take advantage of a falling currency by going short on it. After all, since all currency trades in the forex market are done in currency pairs, you’re basically going long on one currency and going short on the other simultaneously.