Finance

Good reasons to practice trading in the Forex market

272views

Every day, currencies are traded on an international financial market called the “Forex market”. Originally only stock market professionals could intervene in this market, but today individuals can participate through a simple internet connection. Brokerages are numerous. For the start you can take a sneak peek into thefinancialig.com review.

The Forex market is not simply used for trading currencies, and it happens that traders take advantage of this market. They speculate, buy and sell certain currencies against others with the aim of making a profit. . If you too have the soul of an investor in search of profits, you will certainly be seduced by the Forex market.

1. Permanent investment opportunities

We can note that one of the main characteristics of the Forex market is that it is a market that hardly ever closes, it is open 24 hours a day, five days a week, the Forex market is accessible to everyone and since then anywhere in the world, from Sunday evening to Friday evening, so it is possible to enter and exit the market many times as the market is open continuously, you can invest in the Forex market as you see fit seems and when you want it.

2. A highly liquid market

The Forex is also a liquid market. It is one of the most important financial markets in the world. The exchanges of traders represent in total a mass of capital that can amount to 4 000 billion dollars per day. This is much more important than the commodities market on which approximately $ 500 billion of daily transactions occur or the US equity market, which represents volumes of $ 300 billion per day.

The Forex market is a huge market in which central banks, professional traders who work on behalf of investment banks or hedge funds, individual traders and brokerage firms take positions all day long. This high liquidity prevents market manipulation and also ensures easy execution of trades since a trader who sells or buys a trading instrument will always have a counterparty in the market.

3. Forex, a market accessible to all individuals

The democratization of the internet has allowed brokers to democratize trading with individuals. Forex brokers and binary options brokers have gradually taken hold of the internet by launching a number of advertising campaigns that contribute to the dissemination of this market. Websites, forums, blogs and especially individuals who have started to take an interest in Forex trading loans have also contributed to the rise in popularity of Forex trading through word of mouth.

What attracts private customers is that online brokers offer the opening of trading accounts starting at $ 100 (€) for most of them, thus making it possible to invest in the currency market with little money without taking into account the fact that Forex trading is an activity that allows you to make money online from your home. Some private traders can thus make ends meet, and others with a little more experience arrive even to make a living from this activity.

4. Significantly increase its investment capacity

Leverage is one reason that appeals to many people to get into Forex trading. The basic unit when practicing forex trading is the “lot”. It is equivalent to a position of $ 100,000 in the market. There is also the mini-lot ($ 10,000) and the micro-lot. ($ 1,000).

You should know that generally, online brokers (forex brokers) allow traders to take positions equal to 400 or even sometimes 500 times the amount of their initial investment if you want to invest $ 100 in the Forex market with a broker offering With 1: 500 leverage, you will be able to take a position equivalent to $ 50,000 (500 x $ 100).