What are the benefits of trading Forex Market; Stock Markets vs Forex market

Before starting any business we try to find out the benefits of it. Below are the top most benefits of trading Forex market. This will clear the picture of the potential of this market in front of you. And this is an answer to those who keeps on asking, why I should trade Forex market if I am already a stock trader. So here we go now
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                                                                                          24 hour trading; trade on your schedule

Unlike stock markets, Forex market is open 24 hours a day, continuously for five days a week. It opens on Sunday at 5 pm ET (Eastern-Time) and closes its session on Friday at 5 pm ET. Forex trading begins each day from Sydney and it moves around the globe through Tokyo, London and then New York. Since the market is open for 24 hours, so an investor needs not to worry about the timings of trading every day. You can choose the best time for your trading according to your schedule. But it will be more beneficial for you to know about the different time zones and the heavy trading hours when the big economical markets collide.

1.9 trillion dollar per day, Forex is world’s largest traded market, High liquidity, Always moving.

At the Forex a very high volume of approximately 2 trillion dollar is traded every day so it helps in maintaining price stability in all market conditions. You can say that the market is having High liquidity so there is surety for continuous moves of the market every second. So in highly volatile markets also, an individual trader need not to fear to enter if its execution of trade is done at right position.85% Forex market is traded with major currency pairs. You also need not to think that which currency to trade, you can choose one of seven major currency pairs.

Very high Leverage of up to 400:1

It simply means you can start Forex trading with a very small capital or equity. Many good brokers provide you the opportunity to start Forex trading with an account of 50$ only. No other market except Forex can give you this opportunity to trade with this much of leverage. Only Forex provide you with a leverage of up to 400:1 for trading any pair of currency. This means that if you invest 100$ you can buy or sell, 40000$. But it is advised not to use the full leverage provided by your broker. Because on one hand it has the high potential of reward but on the other risk is also high. So it will be better for you learn the proper use of you leverage depending upon the equity and the risk level. Generally using 20% leverage is used by professional traders     

Very Low transaction costs

 Transaction cost is the money which your broker keeps in its pocket on the name of brokerage; no matter you gain or lose money. You might have seen that while buying or selling stocks your stock-broker charge you with a big amount of transaction cost. But in Forex market due to high liquidity and quick price movements, most of the Forex brokers charges almost zero transaction costs.

Earn equally in rising and falling markets, No short selling restriction

You might have seen that when the rates of a particular stock increases then an investor is very happy if he is owning few shares of that particular company but what if the stock market goes down. He starts screaming and praying for the prices to go up as he is losing money and he can’t do anything as he hope that the prices will rise and if it does not happen he lost his stocks or sell them in loss. Some smart investors try to short the stocks but that is prohibited by most of the stock brokers, hence they don’t have other option rather than losing money. But in Forex market the story is different .Here you can buy the currency in rising market and sell the currency in falling market. And the profit is equal in both the direction. And there is no restriction on short selling by any of the Forex broker.

Direct dealing from live currency quotes

The entire Forex brokers provide you with the live currency quotes every second, which you can see online on your computer screen. After Analyzing the market conditions and trend you can place order at the price seen to you. 

Trade execution and confirmation takes place instantly

Time is the most important factor in our life. There is a well said that time is more important than money. If you are dealing online then live currency quotes will be in front of you and whatever the order you place (buy or sell) it should be executed instantly so that you don’t miss the opportunity to pick the profits. At FX market you can have the surety for the instant execution of your trade. Where as in stock markets you need to make a call to your broker for the confirmation which takes few minutes of yours and you miss the opportunity.

Profit and loss analysis is easy

Before placing order or entering into the Forex market you can pre decide your profit and loses and can place stop lose or take profit limits. While your positions are open, their current status of loss and profit percentage is always in front of you. And you can also analyze the profit and losses of your closed deals also.

Market information is accessible all the time

Getting information is easy but getting information at right time is very crucial. It makes a world of difference between a trader and a professional trader because they pay thousand of dollar per year to the firms which provide them with timely news and data relevant to their trades. And a professional trader is able to convert these data into millions of dollar. You might be surprising but it is all true. Now while trading Forex market you need not to worry about it, because if you are internet savvy then there are hundreds of firm which give access to market information before it effects the market. This market information includes real time currency quotes, international news which may affect the value of currencies, government-issues, economic data release of nations such as USA, Europe, Japan, China, Australia, GDP reports, experts views and analysis and chart patterns etc.

                      So my dear friends, I think these reasons are more than sufficient to start trading Forex. The risk vs. reward ratio is very high. If you are wasting your time and money searching and trying online businesses and getting nothing out of it, then stop yourself before it is too late and start learning Forex as soon as possible. This is the best online business to start with. The most important thing about Forex is that it is basically a science to analyze the trends and market conditions, and if you are like challenges and thrill then this playground is for you, start investing your valuable time to increase its value further. And just like phoenix, raise yourself from the ashes and bring yourself to the top of the world. The last word to say is “never stop learning and commit your mistakes before they became a tornado”.