Investment with Forex

Posted by Paul on 29. May 2013

I am in to this profession since the dawn of my childhood, a passionate writer but now I get some buck too.. I welcome all the beginners and the old hands to come and join us..

In today’ society people work hard for financial affluence. No matter what profession they are in, everyone likes to make money if they are given the opportunity. Often people make investments in order to get good returns in the future. There are various many types of investments that a person can make for financial benefits.

Among these forex trading occupies a prime spot. The foreign exchange (forex) trading is more advantageous than other types of trading. One major reason is that the forex market is open 24 hours because it is an over-the-counter market. But the regular stock market is not always open. Most of the available investments need a big amount of money that has to be put in. But with forex you only need a small amount of capital.

Since in forex, money is the only exchange medium, it is much less complicated. You can simply work from a laptop with an internet connection which means you can do the trading from almost anywhere. It is a field where you do not need any additional qualification or long experiences. All you need to do is learn and understand how the forex market works.

The major reasons for going into forex trading can be listed as in the following-

i) It is always open – forex trading goes on round the clock, all through out the world. The opening time for trading positions is 7am, Monday, New Zealand time and closing time is 5pm, Friday New York time. Enter or exit at will during this time. The exchange goes on continuously with electronic currency. This gives you great advantage as you can trade in your spare time.

ii) The outcomes can be correctly predicted. The price of currencies generally repeats in predictable manner so you can easily point out the trends. Take help of some technical analysis and you will be able to use these trends for your profit.

iii) The cost of transaction is very low here. Even if you make any mistake you will not have to pay a big price. Some brokers do not take commissions to maintain and trade through an account even if your volume of trading is not very high.

iv) Forex trading has the scope of unlimited earning. The per day volume of trading in the global forex market is over 1.5 trillion dollars, making it biggest financial market. Compared to that equities market and futures market seems small with 50 and 30 billion per day respectively.

v) It is possible to make money under all types of market condition. In every market there are two currencies working against one another. So if you buy in one market and then sell in another, there is not any kind of bias when a currency is going downwards or upwards. All you need to do is decide which currency to buy and which to sell.

vi) The forex market has transparency. This is a great advantage for any kind of trading environment. You can quickly comprehend the risks and take necessary steps.