Several factors deserve to be mentioned that prove why the trade market in the foreign exchange market is more beneficial than other investment vehicles such as trading stocks or futures.
Here are 6 rapid reasons why you should move your investment dollars in Forex.
(Also called “margin”). Monetary traders benefit from a leverage ratio much higher than typical stock traders – in other words that the negotiating currency requires less Capitol to control larger quantities in security dollars (as much as 100: 1 ratio with some Forex brokers).
Low cost to start.
An online trading account (sometimes called “Mini” account) can be opened for as little as $ 100. These are a great way to get your feet wet without taking a bath.
Your money is gaining interest in a forex currency trading account. How many stock brokers can offer this?
There are about 4,000 actions on NYSE and 2,800 others on the NASDAQ – which will you exchange? The commercial currency implies only the seven major currency pairs in USD instead of 7,800 stocks, which considerably simplifies things for the forex trader. Fewer decisions, fewer headaches!
Forex is a “spot” or a cash market where transactions rarely exceed two days and that stocks are almost always executed at the time and the price posed by the speculator. Many futures traders had the nightmare experience to be “locked” in an open position long after placing the liquidation order. The high liquidity of the foreign exchange market (about three times the trading volume of all other combined markets) that guarantees your quick execution of the order you have placed at the price and time you specified.
No other market has been very important in terms of predictability of trends when some global economic conditions are formed. Many who are active in commercial currency believe that economic indicators are much clearer and provide a surprisingly coherent result on the price management of certain currency pairs, that they can actually define their accounts on “autopilot” and have the software. Robotics trading for them. .