BY TRADING IN THE FOREX MARKET!!!
- Forex never sleeps. The Forex market is open 24/5. …
- Long or short. Forex goes both ways, which can be advantageous for traders. …
- Low trading costs. A few things are worth mentioning under the low cost topic. …
- The leverage. …
- Liquidity. …
- Accessibility. …
- Regulation. …
Why trade any financial markets?
Why should anybody trade financial markets at all? Perhaps the most prominent reason is to gain control over their own economic future without limitations to the wealth of their employer or of their national economy.
‘A basic freedom that we have in virtue of living in a capitalistic country is that we are free to speculate on the movement of prices. This freedom does not require any additional justification, such as promoting the interests of commercials. All that is required is that the general public not be harmed and that the market place be organized according to fair rules and procedures.’ – The Rosenthal Report circa 1976.
Advantages of trading Forex as opposed to other markets
Forex never sleeps
The Forex market is open 24/5. Why? Because governments, businesses and individuals who require currency exchanging services are spread around the world, so trading on the Forex market never stops. This is made possible because there is no single physical location restricted to set opening hours. Rather, since most money in the world is digital these days, so is currency exchange. Naturally, trading volumes per currency are skewed towards certain hours, but in no case is it limited. For example, currency pairs with Japanese yen are most traded when it is daytime in Japan. However, since there are always counter currencies to complement the pair, JPY ends up being traded all day (through 24 hours) with a spike in activity from 00.00 to 8.00 GMT. Similarly, so do the Australian dollar, the New Zealand dollar, the Singapore dollar, the Hong Kong dollar and other currencies of the countries native to the Asian-Pacific region, thus the name of the Asian-Pacific trading session.
Respectively, European currencies are most traded from 8.00 to 16.00 GMT – this is called the London/European session, and from 16.00 to 24.00 is the North-American trading session.
Activity on the Forex market basically follows the sun around the world. At any time of the day or night, you can find an active pair to trade.
A word of caution, though. Just because the Forex market never sleeps, doesn’t mean you don’t have to – a tired mind is no good for trading.
To sum up, the Forex market is open 24-hours a day, 5 and a half days a week and there is no trading over the weekend.
Why would anyone trade Forex as opposed to other markets? A good reason is because those with full time jobs are able to trade Forex after work, before work and on Sunday evening.