Making Money Without Too Much Work

Trading on the Forex market has become a very popular trading market in recent years. Why do traders around the world see the Forex market as an investment opportunity? We will try to answer this question in this article, we will also discuss some differences between the forex market and other markets.

Some of the benefits of the Forex market are:

Superior liquidity.

Currency market liquidity is what actually separates it from all other markets. Forex is by far the largest financial market in the world with more than 2 trillion daily trading volume. This creates greater price stability and higher execution than other markets. This helps us to open and close operation with relative ease. This volume also makes this market very difficult to manipulate from extended.

24hrs Market.

This is also one of the most important benefits of the Forex market. It is a market that runs around the clock, the market opens on Sundays at 3:00 pm EST when New Zealand starts operations, and closes on Fridays at 5:00 pm EST when San Francisco finishes operations. There are transactions in all geographical areas helping operators decide when to operate.

Leverage.

Trading on the Forex market offers more buying power than other financial markets. Some brokers offer leverage of up to 400:1, allowing traders to have only 0.25% of the trade size as collateral to open it. For example, if a trader is using 100:1 leverage, this means that opening a US$100,000 trade only requires $1,000 in their account.

Low transaction costs.

Most brokers do not charge commissions. The only cost traders incur is spread (the difference between the purchase price and the sale price of a pair). This spread can be as low as 1 pip (the slightest variation that can have the price of a currency) in some pairs.

Minimal investment.

The Forex market requires less capital to start trading than most other markets. The initial investment can go up to US$300 depending on the broker used. This is a great advantage as it allows us to have our risk investment at the lowest level.

Specialized operation.

BoydPips

Market liquidity allows us to focus on only a few instruments or currency pairs, as 85% of all trades are made on seven of the most traded pairs. That allows us to monitor, and in the end get to know each other better the instruments.