8 Reasons To Trade Forex Next Week New Strategies.
8 important reasons to Trade Forex
1 Trade Forex – 24 hours a day
Shares are traded on the floor of auction/stock. These bags only are open in time standard of business, typically from 9 A.M. to 9 P.M.
Forex trading is different. For nearly six days a week, you can trade currency pairs at any time. Thus, it is completely at your discretion about when you want to “work” as a FX Trader. In theory, you can do this throughout the day. You can do this in the morning (before leaving to work on his corporate work) or at night after their normal work. Or – if you earn your money as a trader FX – you can work whenever you want it.
The volume of transactions is not, say it, equally distributed throughout the day. It is obvious that currency pairs involving, say, the yen traded primarily in moments in which Japanese traders are active – that is, during the early hours of the morning during European hours or overnight U.S. time.
In theory, you do not require sitting at your PC. The broker Forex AvaTrade for example supports Metatrader, a business software which makes transactions automatically.
Click here to learn how to make automatic transactions!
2 Trade Forex – anywhere
To trade FX, all that you require is a device with Internet access. Therefore, you can trade virtually from anywhere foreign currencies: at home, in your office, in the room of his home, on the balcony, at their corporate office, or even from the beach while in the Bahamas. And with trade in web software, you can do it from your mobile device with Windows Mobile or your iPhone from anywhere in the world where you have a data connection. The established dealer of Forex Forexyard has developed an iPhone App, try it now!
3. liquidity in the FX market
The foreign exchange market is the most liquid market in the world. This means that in a fraction of second buyers and sellers match. If you wish to trade shares of a listed company small, daily volume (number of shares traded every day) is small. In the Forex market, liquidity is immense, because trading volume is more than $ 4 trillion.
Due to the size of the market, there are in addition to liquidity other two big advantages: low risk manipulation by price and minimum transaction costs. Thanks to the liquidity and market size, manipulations of price by some market participants are virtually impossible. You required immense sums to manipulate exchange rates. And given that the market is so large, the differentials between rates of purchase and sale are extremely small. More liquid to be a market, lower costs per transaction. And, between lower transaction costs, the lower the amount of money to make a profit.
4. zero commissions in Forex trading
In contrast to trading stocks, you don’t have to pay commissions to the purchase or sell foreign currency with a Forex broker. Only “costs” that arise consist of differential. The small difference between prices for buying and selling (differential purchase or bid-ask spread) is what your FX broker wins you with each transaction making. The spreads for most traded currency pairs are very low, usually below 5 pips – see our spreads FX by broker comparison chart for more information. InstaForex only imposes a differential of 3 pips on all major currency pairs. Click here to open an account in InstaForex trading with low differential.
5. leverage in Forex
By using leverage, you can consolidate large profits (or losses!) with very small investments. The factors common of leverage in the Trade Forex vary from 1:50 to 1:1000. Most of the FX brokers offer a leverage of 1:200 in most traded pair EUR/USD. A leverage of 1:20 means that you can mobilize $200 only investing $1. Or trading volume of $100,000 investing only $500.
If your pair of currency chosen increase by half point percentage, then you doubles their investment to $1,000. The use of leverage allows you to move huge money amounts to invest only a minimum fraction of money. Larger is leverage, will be under the movements of price to make a profit. In addition, between greater leverage, will be lower margin requirements. With a leverage of 1:200, the margin is 0.5%. In the example above, that is only $500. However, once your position has depreciated $500 to $99,500, its position will be closed automatically because it is no longer covered by your available margin.
With a leverage maximum of 1:1000 InstaForex offers them greater opportunities: consider InstaForex now.
6 making money with money Forex markets downward
If you buy shares you speculated that these will increase in value. This is going to give him money. The performance of actions individual depends greatly of the performance of the market in general. The correlation is usually greater than zero (positive correlation) and in similar markets and connected strongly (e.g., markets in the European union) approaches one. At a time of low economic activity, it is very difficult to earn money to buy shares.
The Forex market here is completely different. You are trading with a pair of currencies, for example, the Euro against the Yen. You have to consider only the two currencies will be developed relative: what currency you will appreciate against the other? And what currency will depreciate? If you think that the Euro will depreciate against the Yen, then sell (go short in Euro) euro and buy Yen (go long in Yen). When his prediction is correct, you will have won money. The Yen that you purchased now worth more than before.
In the absence of such differentials, Forex trading would be a game adds full zero: what the purchaser of a currency pair win (or lose), loses its counterpart (wins) automatically. By buying shares, this is different. An investor sets a strategic share of actions and then select actions to reach this quota. In the markets to the high, it will consolidate gains – the question is just if he attains the maximum payout with the risks he took.
7 Trade Forex – Simple, however complex
The Forex market seems to be very simple at first glance. Most of the volume of trade is given in a few currencies and currency pairs. The most important currency pair is EUR/USD. But in their own exchange rates are determined by a truth of factors that finally exert influence on supply and demand for a particular currency. If the demand for a currency increases, their prices will increase until the supply and demand are balanced again.
This process occurs in the ultra-liquido Forex market almost every second. Without access to high speed Internet and automated trading programs, it is difficult to the casual merchant to compete with professional traders: the FX market is simply more complex than appears at first sight, and requires a lot of knowledge, time, ability and responsiveness to earn a living as a Forex trader.
8. software professional Forex traders private
Professional tools for FX traders, however, are well disseminated. And even the standard trade or Commerce through Web browser software allow the use of tables and other analysis tools. Fairly large advantages have been developed to limit losses and stop loss orders automatically, as well as to take profit when the price has risen far enough.