REASONS FOR TRADING THE FX MARKET

Without much time wasting, let’s hit the hammer on the nail. I hope my sentences are brief and understandable.

Let’s begin!

• You Don’t Have To Pay Any Commission;

•  Middlemen Are Not Required In Forex Trade Business;

•  It Is A 24/5 Hours Plus Market; From Sunday Night through Friday Night; You don’t have much time during the day, don’t worry! Night could put some pips in your account.

•  It Offers Low Transaction Costs. As low as $0.2 per transaction.

•  It Has “Mini” and “Micro” Trading Accounts: You can start with millions, thousands, hundreds even some tens of dollar ($infinity to $50 or less),it depends on brokers though.

•  It Has No Fixed Lot Size. Lot size varies from 0.01 to even 10 or more.

• The Market Is Highly Liquid: You can grab some thousands of dollars within a short period.

• You Have Access to Free Demo Accounts, News, and Chart Analysis: This is for you to learn before risking your real money. Please, always demo trade for at least 3 months before embarking on the real trade.

•  It Support Instant Execution of Orders: Just at the click of a button, you are in for business without hitches.

• You Can Short-Sell Without Restrictions: You stop when it pleases you with no restrictions.                 

•  Buying Or Selling Programs Cannot Control The Market: 

•  It Has Only 4 major currency pairs compared to the stock market: This makes it easy for you to select which currency to trade easily. 

•  There Is No One To Corner The Market; Yes, no bank, company or even individuals can corner the market to favour them. What happens in US, also happens everywhere and at the same time.

•  The Selection Of Leverage Is Fully Allowed:

Amazing ehh? But hold it there!

Let me give some hints on leverage. We will still discuss more about it later on.

                    A LITTLE LIGHT ON LEVERAGE

Permit me to throw a little light about leverage lol!

In the Forex Market, a small margin deposit can control a larger total contract value. Leverage gives the trader the ability to make good profits, and at the same time keep his Risked capital to a minimum.

For example,

If a Broker offer 1:200 leverage, it means that a $100 dollar margin deposit would enable him to Buy or Sell $20,000 worth of currencies.

Let’s look at it Mathematically.

Deposited Amount X Leverage = Value Currency to Control,

          i.e                  $100 X 200 = $20,000

Similarly, with $500 dollars deposit, one could trade a contract worth $500 X 200= $100,000 dollars.

Are you with me?

But leverage is a killer disease without proper Risk Management. It can lead to Bigger Losses and as well as Bigger Profits.

Are you surprise to hear this?

That’sthe truth, and most traders do not put it into consideration. The broker will only lure you with great leverage.

Note: Leverage is one of the giant killers in the FX Market.

We will still discuss more about it later.

Before you begin to get confused on which Leverage is better, I would like you to know the bitter truth about Forex. This is very important as it will get you ready to catch the “Bulls” by the horn or kick the “Bears” booth badly.

Bulls and Bears are always in the fight for who will win the market direction. Don’t get confused. You will get there soon.

Right?