Forex well famous as “FX” or Foreign currency exchange, is the world’s largest financial market that runs its business all over the world 5 days a week, 24 hours daily. Participants in Forex are central banks and corporations, investors and individuals
Advantages in FX Trade
· Liquidity of Market – The daily trade volume in foreign exchange market exceeds 1.5 trillion daily turnovers with all the markets taken together. And this is what makes the foreign exchange market the most liquid financial institution.
· 24-Hour Trading market – Forex Market works 5 days weekly by 24 hours in a day. This is what enables the traders to respond to the market changes straight away to protect profits and losses.
· Leverage Trading – Margin trading in Forex market enables the Forex participants to organize their activity using more funds than they have on their account. Compared to futures and equities the volatility of currency pairs is actually not big.
· No Commissions, Low Transaction Costs and Tighter Spreads - There are also many forex brokers that do not charge any commissions dealing mainly on spreads. (Spread is the difference between the buy and sell prices)
· Trade in rising or falling markets – Trading in forex you can always take long or short positions, which states that you can always keep the currency pair moves under the loop and set appropriate deal.
The hints mentioned below are the trading tips to keep up to in order to avoid losses and boost profit in Forex trading:
· Study Forex market to recognize your goals and strategic behavior to start your profitable trade in forex market.
· Manage your trade business plan and measure the risks you will have to go through in the trading process.
· Choose the best Forex broker carefully, following the well known standards, to name some of them; customer service, trading platform usability, traders’ feedbacks etc
· It is also very important to realize what trading account and leverage ratio to start with. For a newbie it is always advised to start with the demo account. This is advantageous in the sense that you can try your strategies and initiatives in Forex market with money that you will not lose in fact and at the same time you will be able to evaluate you Forex skills and strategic thinking abilities in this market. On the other hand if you are already a skillful trader with years of experience behind, then you can select from the package plans suggested as standard or advanced accounts with various attractive bonus and leverage plans.
· Start with small amount deposits and choose low leverage plans.
· Better to concentrate on one currency pair, while different currencies require separate and deep study. The world of forex trading is complicated, so it is better to organize the currency trading acticities around the currency pairs , the behavior of which you have studied and learned a long run.
However if you find Forex trading a complex notion and consider yourself not yet ready to for a start, then you’d better enrich your knowledge by reading and learning, trading on demo accounts and trying different strategies, also different currency pairs, follow economic events in order you trade fx smart.