Thursday, February 27, 2014

The advantages of Forex Compared Other Instruments

4:09 AM

Forex has obvious benefits and advantages compared to other equity markets . Speaking about the investment field flexible and easily accessible to almost everyone , there is one type that occurred in the head : the foreign exchange market or Forex . This type of market has many more advantages than other types of trading in the world , among which are :

1 . The characters are as OTC ( over-the - counter ) marketFirst advantage is the forex market is open 24 hours a day , in contrast to the stock market or commodity market which has limited opening hours and close . Most investments on the market require a large amount of money before you can take advantage of investment opportunities .

2 . Minimal capitalThe forex market has low capital requirements to be able to start trading forex . Each person can enter the market with a capital of at least $ 1 is called a micro account , which allows you to open positions at 1,000 units . Each " pip " ( with the smallest movement to go up or down ) is worth a profit of $ 0.10 or $ 0.10 depending on the loss of your transaction . Do you want to follow the market trend or against it ?

While Forex mini account , provides more control than 10,000 units of currency , where one pip is worth $ 1.00 . While the standard account gives you control over 100,000 units of currency , and 1 pip in here is usually worth $ 10.00 .

3 . Illiquid natureThird advantage of forex liquidity can not be doubted . There is always a supply and demand that there is no ending . When trading forex , you have full control on your capital , which means that you can buy and sell your position at any time during market hours . Certainly, this fact is an advantage . Meanwhile, if you need to use the money account , you can access it directly without the need for additional commissions or waiting time . Many other types of investments require time to complete the transaction. However, in Forex , you can do anytime .

Because of the leverage or margin , small funds can have great profit potential . For example, utilizing a leverage of 1:100 or 1:500 and 1:1000 which can be found with some brokerage companies .

4 . Various advantages in situationsWhatever the market conditions that occur either bullish or bearish when it remains profitable for those who can seize opportunities . Unlike the Stock trader , stock need to wait for prices to rise in order to profit , it is certain that short-selling is going as subject to strict limits on the stock exchange . However, contrary to the Forex trader , anyone can turn a profit in a variety of positions ( up - trend and down - trend ) .

Any type of business whether it forex or others , the risk factor is for sure . Forex is risky , but it can be prevented with a solid set up a trading system , the ability to manage both capital and self-discipline , then the risk of forex trading can be minimized .

5 . Anytime and AnywhereIf the conventional market / traditional , transaction processing to wait two parties find an agreement . But whenever the forex market buying and selling process can be carried out . As long as you have access to a computer and the internet , you have the ability to trade in the Forex market . An important thing to keep in mind before trading in currency trading is that you can practice with " paper money " , or " fake money " , the demo account .

Tips :Look for brokers foreign exchange ( Forex ) which has a demo account where you can download the trading platform and practice in real time with real market data , but using " virtual money " . Although such a demo trading can not guarantee your success when using real money , but the practice can provide a huge advantage . Especially to prepare for yourself when the going started to trade with real money .


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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.

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