The main advantage of foreign exchange transactions are twenty-four hours a day, five days a week all can deal. Make traders use leverage twenty-four hours a day, five days a week by global news events on the impact of foreign exchange for speculative trading. Foreign exchange market is the largest, most liquid financial markets, is also thought to be real fair competition in the market and the real market price discovery function.
The following lists some advantages of foreign exchange from which we can find why the foreign exchange market is currently the world's fastest growing market.
24 hours trading market
Foreign exchange transactions can be 5 days a week, 24 hours a day. The foreign exchange market is a 24-hour market, each trading day from the Wellington, New Zealand moved to every financial center in the world. Most of the foreign exchange transactions occurred in Tokyo, London and New York. Foreign exchange markets open on Sunday evenings (Greenwich mean time), closed at 10:00 on Friday afternoon (Greenwich mean time). When the important financial markets time overlap time is also the most frequent foreign exchange transactions. 24 hours trading can make financial market price fluctuations more coherent, more trading opportunities.
Another benefit of foreign exchange market is high liquidity. Foreign exchange market is currently the world's most liquid financial markets. This is the biggest difference between the foreign exchange market and other financial markets. Foreign exchange market is trading at $4 trillion, which means that any time you can be cashed in foreign currency assets without having to worry about the price will be discounted. In such a big volume, every transaction on the impact of foreign exchange market itself is very low. So won't appear in the stock market "banker", thus guarantees the fairness and transparency of the market.
Low barriers to enter
In general, access to the foreign exchange market transaction threshold is lower than in other markets. Ares to enter trading Forex only need $2000.
Foreign exchange transactions are generally through the leveraged deals. Using leverage means that you can use a lower initial capital to control a great deal. 100 times, for example, if you are using leverage, so when you use $1000 to buy, in fact you buy is $100000, so the profit will be a $100000 profit. So leverage will make your profits grow at the same time, if not used, the lever will also make your losses.
Do more than empty, two-way trade
Some of the stock market can only do more, not to short, so that when the market in the process of falling (so-called bear) investors will do. Is two-way trade and foreign exchange market, whether the market is up is down, investors can invest in a profit. When you seize the market rise, you can buy; When you put the market to sell.
Each transaction cost point difference plus commission is less than 1 point, such transaction costs means that you can save a lot of cost.
In some markets such as stocks, big banker than the average person can take advantage of the information asymmetry or abundant capital to make money, and the foreign exchange market, due to the huge liquidity makes it possible to keep sufficient transparency, is the same for any investor.
Has a large volume of foreign exchange market and the volatility of the foreign exchange market. Foreign exchange market volatility will mean a growing number of trading opportunities. According to different traders, therefore, should choose to suit oneself trading currency risk strategy. Such as the Australian dollar/s less volatile, suitable for beginners; The euro/dollar, sterling/dollar, such as volatile, suitable for mature trader.
There is no limit to the minimum contracts
Foreign exchange market is not like the futures market in the futures exchange trading, but an over-the-counter (otc), so the number of deals also does not have a fixed like futures contract size limit. Foreign exchange traders have no fixed hand number limit, can choose flexible trading hands, from the lowest 0.01 hand to infinity. This gives traders to provide a tool to control their own risk.
Before select to use leverage to foreign exchange transactions, you should understand that leverage in enlarge profit at the same time, also magnify your risk. Your losses may exceed your initial deposit. Further information about the returns and risk can see in our product disclosure statement.