Forex exchange or currency trading is considered as a global market that is incredibly liquid, with an immense daily trading volume. In the case of investments, forex trading is not for the faint of heart or the inexperienced trader. It is fascinating to know that forex trading like siby Varghese forex trader
allows you to get maximum benefits over other markets after you've learned the ropes.
Why trade forex?
You will be surprised to know that forex trading allows you to get maximum benefits over the other types of trading.
• Many forex brokers don’t charge commissions that are common in stock trading as compare to most brokers make money by using the spread between the bids and ask prices.
• It is glad to know that the forex market is open every weekday for 24 hours. It happens because a major exchange opens at any specific time globally.
• Most brokers also offer leverage to traders that ranges from 1:1 to 1:500. However, a small trader with a $1000 account that is using a 1:100 can easily trade assets worth $100,000.
• In the market of forex trading, traders can also make money regardless of the direction of the assets. A trader can easily buy a pair they believe will grow in price and then sells a pair they believe will fall in price.
• There are no middlemen in forex trading.
Transaction costs are low
The cost of a transaction is typically built in the forex market in the form of the spread. All the Forex brokers pocket the spread for facilitating the trade. The spreads are measured in pips. a pip is the fourth place after the decimal point or 1/100 of a percent in many currencies. However, in many currencies, a pip is also known as the second place after the decimal point or 1 percent. The brokers may also charge a commission on a percentage of the amount of the transaction.
You can use the leverage
Forex brokers also allow traders to buy and sell in the market by using significant amounts of leverage. All these leverages give them the ability to trade with higher amounts of money. If you want to trade at 50:1 leverage, in this way you can trade $50 for every $1 that was in your account. In this way, you can control a trade of $50,000 by using only $1,000 of capital.
There's high liquidity
It is essential to know that liquidity is the ability of an asset that can be quickly converted into cash. In the world of forex trading, high liquidity means large amounts of money. This money can be moved into and out of currencies with the help of generally small spreads.
It's a 24-hour market for five days
Do you know that the forex market is worldwide? In this way, forex trading is pretty much continuous as long as there is a market open in the world. Trading hours are different in every country but it’s a 24- hour market for five days.
No matter if the market is rising or falling, fore trading allows you to trade with effective strategies. You can easily find opportunities in any market condition especially when you believe the price of a currency pair is going up. Some traders also thrive on high volatility periods.
It is fascinating to know that the siby Varghese forex trader
doesn’t allow any restrictions on directional trading. It means that if you think now the currency pair is going to increase in value, you can buy it easily. If you think now the currency pair is going down, you can sell it.
The forex market quickly calibrates itself and levels the playing field. Furthermore, the forex market is also decentralized and there are no middlemen. It means that you can trade directly with another participant in the market. A retail forex broker simply facilitates this connection. In this way, we can say that forex trading in this modern era allows you to get several benefits.