This article from will give you the key points , what are the advantages to be gained in forex trading . There is a myth about the differences forex trade and investment .
The myth needs to be clarified so that traders know what things are actually happening . Al Thomas , President of Williamsburg Investment Company , once said , " If the price does not go up , do not buy " . He also said , "Everyone who invests is a trader , only the time period that will distinguish the benefits ( both) . "
So now let's compare features of forex trading with stocks and commodities .
LiquidityThe forex market is the most liquid financial market in the world , every day about $ 1.9 trillion dollars are traded . While in the commodities market around $ 440 billion dollars per day and U.S. stock markets only trade worth $ 200 billion dollars per day . With the value of traded it difficult and almost impossible market manipulation . This condition also ensures easily executable trade .
Time TradingThe forex market is open 24 hours a day ( except Saturday and Sunday ) , that means in the U.S. will be open on Sunday puku 3:00 ET and closes on Friday at 5:00 ET , which allows traders to trade at will . When compared to the commodity trade depending on the commodity . Including trade U.S. stocks traded only at 8:30 to 6:30 pm ( ET ) on weekdays only .
LeverageDepending on the type of forex account , you can leverage 100:1 , and there are also forex broker offering up to 400:1 leverage . Leverage in the stock market is only 4:1 , and in the commodity markets have leverage varies with the commodity traded . Because the commodity markets are not liquid as the Forex market , leverage tend to be small .
Trading CostsForex transaction fee is charged between the buying price and the selling price is called the spread. There are no brokerage fees . While for both the stock and commodity markets there are transaction costs and brokerage fees . There are even certain brokers who charge other fees as well .
Minimum InvestmentYou can open a Forex trading account as you wish with a minimum of $ 1 . Need $ 5000 if you want to open a futures trading account .
Focus85 % of all trading transactions are made on 7 major currencies . In the U.S. stock market there are 40,000 shares . There are more than 200 commodity markets , although some highly liquid but usually not traded except by hedgers entirely .
Implementation of TradingIn the forex market trade execution is almost instantaneous . While in the equity and commodity markets , you can can use the services of a broker to execute a trade , but the results are sometimes inconsistent .
While all of these features make trading the Forex market very attractive , but still needs a lot of education , discipline commitment , and patience . All trades have a risk respectively .
The myth needs to be clarified so that traders know what things are actually happening . Al Thomas , President of Williamsburg Investment Company , once said , " If the price does not go up , do not buy " . He also said , "Everyone who invests is a trader , only the time period that will distinguish the benefits ( both) . "
So now let's compare features of forex trading with stocks and commodities .
LiquidityThe forex market is the most liquid financial market in the world , every day about $ 1.9 trillion dollars are traded . While in the commodities market around $ 440 billion dollars per day and U.S. stock markets only trade worth $ 200 billion dollars per day . With the value of traded it difficult and almost impossible market manipulation . This condition also ensures easily executable trade .
Time TradingThe forex market is open 24 hours a day ( except Saturday and Sunday ) , that means in the U.S. will be open on Sunday puku 3:00 ET and closes on Friday at 5:00 ET , which allows traders to trade at will . When compared to the commodity trade depending on the commodity . Including trade U.S. stocks traded only at 8:30 to 6:30 pm ( ET ) on weekdays only .
LeverageDepending on the type of forex account , you can leverage 100:1 , and there are also forex broker offering up to 400:1 leverage . Leverage in the stock market is only 4:1 , and in the commodity markets have leverage varies with the commodity traded . Because the commodity markets are not liquid as the Forex market , leverage tend to be small .
Trading CostsForex transaction fee is charged between the buying price and the selling price is called the spread. There are no brokerage fees . While for both the stock and commodity markets there are transaction costs and brokerage fees . There are even certain brokers who charge other fees as well .
Minimum InvestmentYou can open a Forex trading account as you wish with a minimum of $ 1 . Need $ 5000 if you want to open a futures trading account .
Focus85 % of all trading transactions are made on 7 major currencies . In the U.S. stock market there are 40,000 shares . There are more than 200 commodity markets , although some highly liquid but usually not traded except by hedgers entirely .
Implementation of TradingIn the forex market trade execution is almost instantaneous . While in the equity and commodity markets , you can can use the services of a broker to execute a trade , but the results are sometimes inconsistent .
While all of these features make trading the Forex market very attractive , but still needs a lot of education , discipline commitment , and patience . All trades have a risk respectively .
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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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