Good Points of the Forex Market
With forex dealing, there are a lot of good sides compared with dealing with stocks or equity. Because of the ongoing uncertainty that affects the stock market, a lot of equity dealers are now thinking of dealing in the foreign exchange market. What are the reasons on why you should deal on the foreign exchange market? What are the advantages of the market compared with the other financial markets in the world? Here are just some of the advantages of the foreign exchange market.
1st, around the clock dealing. The foreign exchange market is always open anytime of the day. The main reason is that there is always an open market in any of the time zones around the world. There are always dealers that are dealing in the foreign exchange market from London up to New York.
Forex dealers can quickly deal with the changes in the market and take advantages of the trends The Electronic Communication Networks in stock and future markets are new products and are regarded as extensions to the usual dealing hours. A lot of ECN's possess less liquidity and there is absolutely no assurance that the deal will be done at a good price.
2nd, Liquidity. The foreign exchange market is considered to be the most liquid financial market all over the world. The daily dealing volume in the foreign exchange market is $3.2 trillion dollars. This enormous daily turnover surpassed the entire turnover of the world's financial markets in a single day. With this enormous turnover, it will always ensure cost stability.
3rd, the simplicity of the foreign exchange market. There are not that many money majors that are exchange in the foreign exchange market. The stock market has a lot of stocks to keep an eye on and it is very difficult to keep an eye on them.
4th, small dealing capital with big revenue potential. The total amount needed to open a dealing account is smaller than $300 dollars. Due to market competition, some dealers even accept smaller amount. This practice in the foreign exchange market can possibly earn you a lot of money every week. In the stock exchange market, this prospect seems unreachable.
5th, big leverage of one hundred is to one-one hundred is to one leverage is usually available from online forex dealers. This usually surpass the normal two is to one margin that is offered by equity dealers, and fifteen is to one in the future market area. Some dealers even future a bigger leverage of one hundred is to one. But it is vital to remember while this leverage gives investors some option to maximize their profit, the potential for revenue is also big.
6th, forex demo account. Most forex dealing sites usually feature a demo account which allows new dealers like you the opportunity to practice real forex dealing without any strings attached. With the advantages that forex dealing offers, it is no wonder that a lot of market investors are investing in the market and taking their chances with the future of the market.