The Advantages of Trading Forex

In a world of internet, day trading & investments have become available for every person, everywhere. You can do a direct trading in the stock market, commodities,
forex and more. The million-dollar question would be which security is better? The truth is that there is no absolute answer for that question, but you can point out some of the advantages for each one. In this article, we will show the main advantages of trading in the Forex market.

The most important advantage in Forex would be its liquidity. The total size of the currencies trading estimated 1 trillion dollars per day (!). This huge number allows the Forex trader to go into a trade with any size he wishes without concerning about whether he will get the size he asked or not. Of course, it is important that the trader’s broker is stable enough to deal with huge volumes. Likewise, large volumes make it almost impossible for small players to manipulate the market or “shake” you out of a trade.

Trading Forex also gives you opportunities to make money out of news & events from different economies around the world, since important news can have tremendous impact on currencies. For example, if the US unemployment claims is lower than expected, the USD can rise many pips within just few minutes and you can make quick profits during that rising.

Great post ChrisJMan! Keep trading :slight_smile:

Trading Forex around the news can be very profitable, but very spiky candle stick can be produced around the news, not my favourite way of trading, you have to be on the ball as it can go up or down as quickly as it did vice versa.

Hi @ChrisJMan

Thanks for sharing this informative post and here I am sharing few more benefits:

  • You can enter the market with a small investment
  • Forex market delivers info easily to the public about its tariffs and up-to-date forecast.
  • Complete control with respect to making a trade.
  • Trading Forex at Any Time of Day
  • Make Money on Rising and Falling Currency
  • No involvement of Central Exchange