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Advantages of Forex trading


Advantages of Forex. Forex market is characterized by freedom: Forex trading or so-called currency trading is the largest financial markets in the world where the average daily trading about 1.4 trillion dollars a day. This represents 46 times the value of all futures markets combined.In the midst of so many people trading currencies around the world, it is very difficult even for governments to control the price of their currency. Market working hours: Through futures, a trader is limited to trading only in the few hours when the market is open on official business days.If any important news is released when the markets are Forex trading is a low margin trade: Just like stock and futures speculation, a forex trader has the ability to control a large amount of money once he has and can provide a small amount of margin. However, the margin requirement in futures trading is about 5% of the total value of the contract or 50% of the total value of the shares. While margin requirements in Forex may range around 1%. For example, the margin required to trade each contract worth $ 100,000 is only $ 1,000. This means that with Forex trading, a currency trader can play about five times the value of a product he trades as a futures trader or 50 times as a stock trader. When you trade with the margin, this may be a profitable way to make an investment strategy, but it is important that you learn how and what this trade is, to understand the risks involved and to know how the margin works. So it is best to make sure you read the margin agreement between you and the clearing company. Have your account. Trading positions are opened in your account and may be liquidated in whole or in part if the margin available in your account falls below a predetermined level and you may not actually receive the margin call before you liquidate your trading positions. For this reason it is necessary to monitor the margin balance continuously and also to issue stop loss orders for each trading center opened in order to reduce losses and drop in prices.Rotating trading centers Forex trading centers are closed every two days and can be traded automatically by leaving them open. When the contracts expire, you should plan again if you are going to rotate the deals again or not.Stop orders are guaranteed and limited risk When dealing in futures trading the risks may not be limited. For example, you may have thought that the prices of its commodities will continue to trend upwards in one month. The collapse of this commodity in the market may result in bad publicity, poor production or the like. This leads to a drop in the prices of these commodities, which led to prices to decline regularly for several days, for example in this case you may not have the ability to exit the trading center Therefore, if the price continues to fall, you may be forced to find more funds to offset the deficit in your trading account and you may be left out of the cycle of Forex trading without a profit. Forex trading does not have a commission nor exchange expenses: When trading in futures contracts it is necessary to pay fees for brokerage and swap services. Forex trading is characterized by the fact that there is no commission and this advantage is not found in any other trade. Forex Trading is an interbank global market that allows sellers and buyers to deal instantly and instantaneously. The account holder in Forex does not pay a commission to the broker to allow him to complete those transactions and therefore the spread is usually larger than that in the futures market.For example, if you are trading in the USD pair, you may find that the spread in Forex trading is about 3 pips ($ 30). While when the JPY futures trade, the spread will be within a single point ($ 10) but will also pay a commission fee to the broker plus that.This commission may range from $ 10 in the case of basic commission services and may be up to $ 50 if the entire trading services are nevertheless the actual cost of accounting is sure to be all inclusive. As a trader, you will have to compare the commissions you will pay to the Forex trading on the Internet and the futures contracts to see which area will cost more.