Why is Forex so popular ?
Because it can operate from anywhere. From his kitchen table, bedroom, garage or the nearest Starbucks (most of them have wireless Internet connection).
If you have or like to travel, take your laptop with you and you can trade the FOREX anywhere in the world where you have an Internet connection.
When you want to start trading the Forex Market nobody is asking you a diploma, a formal license or proof of how many hours have been studying the forex market and / or banking.
Forex trading is cheap and the implementation costs are low ! You can open an account to trade Forex with as little as $ 200 in U.S. that most brokerage firms. The main benefits of trade FX Spot Market are :
- You pay no commissions or fees.
- You can operate 24 hours a day.
- You can trade up to 400:1 Leverage.
- You can have free Streaming executable quotes and live charts.
It is important to know the differences between cash FOREX (FX spot) and currency futures. In currency futures, is predetermined size of the contract. With FOREX (foreign exchange spot), it is possible that electronic commerce any desired amount, up to $ 10 million.
The futures market closes at the end of business day (similar to the stock market). If important data is released overseas while the futures market closed the U.S., the next day’s opening might sustain large gaps with potential for huge losses if the motion is the direction against his position.
The Spot FOREX market runs continuously 24 hours a day from 7:00 am New Zealand time Monday morning at 5:00 pm New York time on Friday night.
Dealers in every major FX trading center (Sydney, Tokyo, Hong Kong / Singapore, London, Geneva and New York / Toronto) ensure a smooth transaction as liquidity migrates from one time zone to another.
Moreover, trade currency futures not amounts of dollar-denominated single currency, while in the field FOREX, an investor can trade almost any currency denomination, or in more conventional quoted USD amounts.
The currency futures pit, even during Regular IMM (International Money Market) hours suffers from sporadic pauses in liquidity and constant price differences.
The Forex market place offers constant liquidity and market depth much more consistently Futures. With IMM future is limited in the currency pairs that you can trade. Most currency futures are traded only versus the USD.
With Spot, you may trade currencies vs. USD or against others on the basis of ‘cross’, for example: EUR / JPY, GBP / JPY, CHF / JPY, EUR / GBP and AUD / NZD
More and more knowledgeable investors and entrepreneurs are diversifying their traditional investments like stocks, bonds and foreign exchange products due to the following reasons :
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