2. Reasons to trade Forex
Are you frustrated with the stock market only being open certain hours?
Then maybe you should trade on the Forex market. It is open 24 hours a
day, Monday to Friday. There are several reasons why you should trade
Forex. Let’s delve into them.
3. • A trader can change positions at any time of the day or night,
regardless of where they reside. This opens up the lucrative potential
of Forex to millions of people that might otherwise have no free time to
trade. Getting back to the stock market, for example, most people that
work a typical 9 to 5 job just can’t become expert day traders. They
don’t have the time to spend watching stocks. With Forex, though, a
person could trade in the evening after work or in the morning before
going to work. It is also a great market for people with erratic sleep and
life schedules.
4. • For the most part, the Forex market has no transaction costs. Forex
brokers usually don’t charge commissions. If commissions are
charged, they’re usually pretty tiny. The bid/offer spread is sometimes
thought of as a transaction cost. However, most traders will buy at the
offer price and sell at the bid price, so it’s really not all that different. A
lot of Forex spreads can be very, very small.
5. • There are a lot of opportunities out there to get started with smaller
accounts. It is such a large market, and there are such wide trading
demographics. Some brokers have no threshold for account size. There
is usually no minimum trade size either. That offers a lot of
malleability to anyone who wants to get involved with Forex trading
on their own.
6. • There are a lot of trading avenues out there like the spot market, the
futures market, and futures option. New trading alternatives are
opening up all the time. There are countless ways for traders to take
advantage of the Forex market.
7. • One of the biggest incentives to traders is that the Forex market is
always moving. There are a lot of primary currencies, and each one is
always interacting with the other ones. There is usually movement in
at least one exchange rate or another because of the massive amount
of trading.
8. • With the stock market, there are some restrictions on selling short. In
Forex, there are no restrictions of that sort. Taking a short position is
as easy as taking a long position.
