The advantages of Forex Trading

The advantages of Forex Trading

Going into the forex business definitely gives its own advantages. There is magnetic power or tremendous appeal if you already know What is Forex and Forex Trading Concepts. You will get a broader overview of why many retail traders plunge into forex trading.

The Forex market began to be available for non-bank traders in 1999, its popularity is relatively soaring compared to other markets. However, before we start and fill our minds about the advantages of forex trading, you need to know and remember one important thing. All markets, be it personal equity, real estate, stocks, options, or forex to one thing. That is, the market is always looking for satisfaction about payback compared to the level of risk that you are going through at one time.

High Leverage
The Forex market allows you to trade in certain amounts of leverage. Leverage allows you to control / have a position or a larger transaction from your base of capital. Therefore, with a $ 5,000 account, you can open a trading position of $ 10,000, $ 50,000, or $ 100,000, if you wish.

Your profit or loss on forex trading depends on the size of open trading. Therefore, if you open a position that is too large compared to your account equity and there is a market direction that is opposite to your open position, then you could lose more than your ability or desire.

Small Capital
To start trading forex in the Forex Market, you can use a relatively small capital. The Forex broker you choose will set the required starting equity. As a retail trader, you will certainly choose the right equity to achieve your realistic goals.

Low Cost
Another aspect is the low cost or transaction costs. Transaction fees in Forex are known as spreads and are calculated as Bid and Ask price differences measured in pips. This cost becomes a consideration because the lower the spread, the sooner you will realize the benefits if the market moves according to your analysis and position.

24 Hours Access for Five Day Active Market
When compared to stock trading, for both active and non-active traders, this will be a dilemma. You live in Asia (Indonesia), then so active you want to trade US stocks. Then you need extra power because the opening hours of US stock exchange is different up to 12 hours. US Stock Exchange opening hours are from 9.30 AM to 04.00 PM local time. This means that at night time Indonesia until dawn. This means if you want to have an active trading style, you may need to pay someone else to trade for you.

But this dilemma does not exist in the Forex Market which is always open 24 hours for 5 active working days. Moreover, there are three different zones in a given trading day with different trading opportunities so that regardless of your preference for how trading, there may be several occasions in the day for you to take advantage of.

The Intermarket Movement Corresponds to the Forex Market
That is, there is a correlation or relationship between the forex market with intermarket. For example is the world’s most popular stock market is the Nikkei 225. The Nikkei 225 is a Japanese stock exchange actively driven by aggressive monetary policy through the Japanese Prime Minister and Bank of Japan. Therefore, the movement has a relationship with the movement of the Japanese currency is Yen (USDJPY).

The Japanese yen helped boost the 57% Nikkei 225 in 2013.

Every global financial market is always appreciated or uses the global currency. This is able to trigger a shift in global capital flows to new and more attractive markets in different countries. This global capital shift can be done massively.

Well this is often called Intermarket analysis or Intermarket correlation. The reason that this is viewed as an excess of forex trading in the forex market can be a tool or tool to add ideas to your trading plan. A good trend can flourish in the Forex Market for a variety of reasons, but if the global capital flow shift begins to expand, you may find your trading trend moving faster and farther than you might think.

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