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In the past ten years, there has been an increase in the number of people trading Forex online. The likely explanation for this is that Forex trading gives several unique advantages. Why trade currencies? This market is open 24-hours a day, 5+ days a week-Forex is a global market and trading will carry on so long as there is a market that is open somewhere in the world. In each time zone around the globe, Forex markets are open from 8am to 4pm. As some markets close, others open elsewhere. You could, therefore, trade currencies at any moment, allowing you to boost your income without giving up your day job. The market is incredibly liquid - The foreign exchange market is the biggest and most liquid of financial markets, with the trading volume often exceeding $4 trillion US dollars each day. As a result of its remarkable liquidity, it is not difficult to get in and out of trades at any time, in spite of substantial orders. You can make money from both bearish and bullish markets - One great thing about trading in the forex market is that you can profit from both bullish and bearish markets. If you believe a currency pair is going to increase in value, you can buy it. If you believe it will decrease in value, you can go short. You don’t need to be rich to start trading - Trading in Forex requires a substantially lower initial cash outlay in contrast to other financial markets. You can open an account with as low as $300 based on the amount of leverage offered by the broker. Substantial leverage is available to Forex traders as a result of market’s remarkable liquidity. Leverage allows you to trade more money on the market than what is really in your account, meaning it is possible to profit greatly from even the smallest price movements. Remember, however, that leverage can amplify not only your gains but also losses, so be sure to use it prudently. Transaction fees are low - Transaction costs minimize returns along with the amount of capital you can otherwise invest. In Foreign exchange, the only cost traders pay in any transaction is the difference between the buy and sell price of each currency pair. Few currency pairs to select from - It is simpler to specialize in Forex than in other markets. For example, when trading stocks, you will have over 4,000 stocks to pick from. In Forex, most trades are done on major currencies which include the USD, EUR, and JPY. Even if you include every currency in the world, currency pairs are still outnumbered by stocks. Discover a reputable Forex broker in Australia by going here.
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