Business Benefits of FOREX Trading


by GROSHAN FABIOLA - Date: 2007-05-19 - Word Count: 542 Share This!

The FOREX market is a cash market where foreign currencies are traded via brokers. The increase or decrease in the traders' investments depend on currency movements. Foreign currencies are bought and sold simultaneously and constantly across both local and global markets. FOREX trading conditions can be influenced by real-time events.

Most traders prefer short time FOREX trading for a number of reasons, such as the twenty-four-hour availability and access to global dealers, profit opportunities from volatile markets, risk exposure control by means of standard instruments, the possibility to trade most currencies due to the enormous liquid market, leveraged trading, zero commission trading, as well as the ability of being profitable in rising or falling markets.

The advantage with FOREX trading is that the investor can profit from foreign currency movements. This type of trading is always done in currency pairs, which results in a "FOREX rate", or "rate" for short. A good investment can only be assessed by comparison to alternative investments. The return on investment and the return on a risk-free investment should be at least comparable to be able to speak about a profitable investment.

With global FOREX trading traders of almost any size, such as smaller companies or individual speculators are provided with the opportunity to trade the same as large players, in terms of rates and price movements. Average traders and individual speculators have been granted access to FOREX trading only recently. The main participants used to be banks, major currency dealers, and maybe high net-worth speculators. These used to be the only types of participants that could rise up to the large minimum transaction sizes and stringent financial requirements. FOREX trading advantages, such as fantastic liquidity, were only available to these traders initially, as opposed to now, when all- size traders are given the opportunity to trade.

Quality FOREX market analysis is equally important for both amateur and professional traders. Those who do not master global FOREX trading should take an online course that can get them off to a good start, because getting wiped out is just as possible as being successful with this investment tool. Nevertheless, no FOREX training course is a guarantee for profits.

FOREX trading differs from other types of trading from availability and liquidity to fees and various restrictions. First of all, global FOREX trading is possible around the clock, five days a week, as opposed to the limited trading hours that other markets impose. Secondly, there is no threat whatsoever that liquidities might dry up after market hours, since currency exchange transactions are required to continue in order to facilitate world commerce. Moreover, global FOREX trading is commission-free, unlike other markets where traders are required to pay all sorts of fees, such as clearing fees, government fees, exchange fees, and so on. Last but not least, there are no restrictions as far as account balances are concerned (they are very low), and accounts can be opened with minimum deposits.

All in all, the most outstanding FOREX trading benefits include its availability twenty-four hours a day, high degree of leverage, no restrictions on shorting, not to mention being the most liquid market in the world.

If you are looking for more information about Global FOREX Trading or FOREX Trading visit http://www.globalforextrading.org


Related Tags: forex trading, global forex trading

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