FX vs. Equities and Futures
The currency market is the largest market in the world, with billions of dollars changing hands every day in all of the major financial centers of the world. As the internet trading makes currency trading accessible to everyone, many traders are migrating from traditional markets to trade FX. Why are more traders discovering the FX markets every day?
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No Commissions or Fees
In the currency market, you pay NO commissions and NO exchange fees. Because you deal directly with the market maker on a purely electronic online exchange, you eliminate ticket costs and brokerage fees. Currency traders pay only the spread when they trade, which means that they can trade as actively as they like without worrying about their profits being eaten away by extra costs and fees!
24 Hour Trading
Because there is always a major financial center active somewhere in the world, the currency markets trade 24 hours a day. This continuous trading action means that traders can enter and exit their trades at any time-without having to wait until the market opens to act on new information Whether you trade before work, after work or late at night, there are always opportunities to trade in the currency market.
Technical Trading Works
Forex is the perfect market for technical analysis. Currencies rarely trade in tight ranges-instead, they usually develop strong trends. Because over 80% of volume is speculative in nature, the market frequently overshoots and then corrects itself. A technically trained trader can easily identify new trends and breakouts, which reveal multiple opportunities to enter and exit positions
Because so many currency traders are basing their trading decisions on technical analysis, technical levels become even more significant, to the point that they are often a self-fulfilling prophecy in the forex market.
Profit in Bull and Bear Markets
In the forex market, there is profit potential in both bull and bear markets. Because currency trading always involves buying one currency and selling another, there is no structural bias to the market. If you are long a currency, you are always short another currency. Because of this, there is potential for profit when currencies trend upwards and when they trend downwards. This is different from the equities market, where most traders go long instead of short stocks, and so much of the equity investment community tends to suffer in a bear market.
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