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Advantages of Forex market

What advantages does Forex market have compared to other types of investments?

International currency exchange market Forex is the most dynamically developing market among all financial markets in the world. It is related to the fact that currency market Forex has many significant advantages compared to other financial institutions: the highest liquidity, operations are executed 24 hours a day, the lowest cost of deals, margin trading, dynamism, huge number of participants and many others.

The trade volume at Forex is 1.5 – 3 trillion dollars per day, and it is tens times higher than daily turnover of stock and futures markets. Due to high liquidity traders are able to conduct operations of any volume by one and the same market quotation. The high liquidity of the market means that there are always abundant number of sellers and buyers, so there are no problems with opening and closing positions. And also due to the high liquidity exchange rate is smooth even during the crisis. Chart rarely has gaps which can not be referred to the stock market. Forex works 24 hours a day 5 days a week so trader can execute deals constantly. Placement, monitoring and execution of all orders are carried out 24 hours a day. Trader is able to open position right after the news release instead of waiting for stock market opening together with tens of thousands of other traders. A great advantage of Forex market is absence of commissions for deals, the only fee trader has to pay is difference between buy and sell price – spread. Owing to the absence of real delivery of currency, the prime cost of executed operations is much lower.

The prices at Forex market is determined only by demand and supply. So very often strong trend appears on it and traders have all chances to increase their profit. Cogent favor of the currency market Forex is principle of margin trading. Having even insignificant initial capital trader can work with funds tens times more than his initial deposit. In case of successful operation it increases his profit in several times.

Traders also have access to a great number of instruments, in particular, liquid currencies and crosses. Every trader has opportunity to choose from slow or fast instruments. Forex works always and anywhere and if you have free access to computer and Internet, your power at the international currency market is limitless.