Saturday, February 22, 2014

Definition Of Forex Trading Benefits

7:29 AM

The dynamics involved in forex trading often bring two factors namely profit and loss . But behind it all turns out forex trading and the opportunity to save a lot of potential if explored more accurate . In addition there are many forex derivative businesses that could be a distinct advantage . Indeed, we all need to understand that every job has its own advantages and disadvantages of each . However, choosing a forex trading at least you get 4 advantages of :

24 hour access to perform transactions .That's right forex market is open 24 hours every day . Because of this flexibility , of course, allows us as traders to set their own hours of the transaction . So the time control transactions in your hands . Suppose you decide to trade after work , relax time , on certain days , or at certain hours . You can also perform the analysis first uses market data yesterday , and then to determine the transaction tomorrow . With market conditions like this so you can manage trading on the sidelines of your daily routine .

Liquidity and EfficiencyIn the forex market there are many sellers and buyers resulting in prices moving up and down . With the condition that the liquid you can trade , both the position of buy / sell at the current price . The forex market is the most volatile market in the world because in forex trading volume reached 50 to 100 times larger than the New Your Stock Exchange Stock Exchange .

In stock trading , an event or news could have a significant impact on the price of a stock that rises or falls rapidly . Stock prices can change drastically suddenly . It is caused by an internal factor shares themselves or foul play elements are not responsible , who is called insider trading . So if you are a player that relies shares news from newspapers or television was certainly overdue .

Meanwhile in forex , currency movements are influenced by many factors , groups , and individuals where each player directly influences the price . By default , there is no party that can organize a scheme of price movements such pairs in stock . With coverage is impossible to manipulate the price of pars . So the possibility of ' insider trading ' zero .

Opportunities in forex trading from time to time will continue to appear as prices fluctuate . The value of fluctuations is called volatility . Volatility is a measure of maximum return that can be generated by a trader . Volatility for the most liquid stocks are between 60 to 100 . Meanwhile , volatility for currency trading is 500 .

Low Transaction CostsForex transactions are not subject to commissions or transaction fees . For forex trading the only cost involved when trading or spread trading is taking a position . Due to the low transaction costs , we can open more than one position at a small cost . The brokers generally give a spread of 0.03 % of your position size . For example you buy / sell $ 10,000 ( contract size to 1 standard lot ) then subjected to a spread of 3 points or equivalent only $ 3 .

High LeverageIn the stock market it's not much good party bank , institution , or individual willing to lend capital for free of charge . If there are of course also have a complicated condition . Therefore, if you trade in stock no laverage . This means that you are only able to trade for your capital . If you have $ 10,000, you only really be able to buy shares at a value of $ 10000.

In contrast , in the forex market . You can use the borrowed money ( leverage ) . So automatically you can trade currencies , for example, from $ 10,000 , to be able to make trades , you only need to spend about $ 50 ( margin lending ratio of 200:1 ) to $ 200 ( margin lending ratio of 50:1 ) .


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We love the world of forex. Sharing information about forex is our way of showing happiness. Therefore we made ​​a "Campus of FOREX" as a portal to learn forex.

Forex is not something to fear, but fear when you are not able to control yourself in the forex or whatever. When profit in forex it becomes your personal responsibility, and when you lose in forex it also becomes your personal responsibility. Forex simply as a facility to achieve financial freedom, no more no less. Forex is a place to think realistically.

Being successful in forex, it means you are committed to establish a disciplined and thoughtful character. Forex may be the best mirror of your true character. Forex is just forex.

Happy reading.

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