Advantages of Forex Trading - The forex market is a promising market for high returns is capable of playing cleverly on the market. As it looks now, transactions in the foreign exchange market is growing rapidly. People do not just make the foreign exchange market as a place to exchange currency or facilitate bilateral cooperation but the foreign exchange market with increasingly sophisticated technology, it enables anyone to join the pursuit of profit in foreign exchange markets.
Technology has also provided the opportunity for individuals individuals with kempuan funds / limited capital to be able to enjoy the sweetness of the foreign exchange market. Following advantages provided by the Forex market.
Low transaction costs
Forex brokers usually quote the commission is relatively very small compared to the brokers in the capital market. Even for some of the trading is done online via the Internet is not subject to a transaction fee, but only charge which is quite diverse. In addition, the difference (spread) between the purchase price (bid) and selling price (ask) is also very small.
Liquidity / Liquidity
The forex market is highly liquid (liquid). Liquidity that is the main attraction of the forex market. Because of the nature of the liquid, the transaction can be taken immediately. Liquidity also shows transparency on price movements. The foreign exchange market is very attractive to big players and big players such transactions will also bring a great impact on the forex market (forming a trend). The nature of this transparency will benefit because we can hitchhike or take part following the trend direction (trend trend buy or sell) transactions created by the big players.
Potential gains on rising and falling price
In each open position, meaning traders buy (long) a currency at a time to sell (short) another currency. Short position means the trader sells a currency in anticipation of the currency will be depressed or weakened against other currencies. Two positions are performed simultaneously this means the trader has a good profit potential in a strong currency and the currency weakened.
Leverage
The existence of the system allows the trader to leverage a small margin deposit can make a contract deal with larger quantities. Leverage gives the trader the opportunity to traders in order to obtain multiple benefits and minimize risk of capital loss. For example, brokers offer 100:1 leverage, which means that the $ 100 deposit we can make buying and selling for $ 10,000. however, remember that leverage is a double-edged sword as 2, can be very beneficial and also detrimental.
Easy to adjust / Convenience
The forex market runs 24 x 5, where 24 hours a day, and 5 x week. This gives us the freedom to transact at certain hours according our free time. In particular peer to peer traders who are still working or have other business. It is very suit, and there are also some brokers that make it easier to execute transactions automatically or automated trading systems, ranging from simple shapes such as limit orders to the advanced system and programmed.
Margin trading
Trading on margin is a yag facilities provided to investors to be able to trade more than capital owned. This can happen because investors get loans from a bank or broker, where investors simply provide a bit of money as security (collateral). For investors, the use of margin trading will increase purchasing power due to funds being transacted exceeds jumlahmodal owned. For companies or bank lending, the use of margin trading will increase competitive advantage. Types margin is provided to investors with margin and margin percentage by a certain amount of money.
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