Advantages of Forex Trading
Although Forex is by far the largest and most current market in the world, day-to-day traders have focused largely on futures and futures markets. This is mainly due to the limited nature of the commercial services provided by the bank.
A spot deal (Spot spot) has many advantages over the futures and futures markets. The main benefits are as follows:
- 24-hour market
- Low spread
- No commission or transaction fees
Forex is a global market that never sleeps. For about 7 days a week, 24 hours a day. Most of the time between the time the New Zealand market opens, it’s Monday, which is Sunday night in Europe, and Friday is the United States where the market is closed.
Forex market is big and still expanding. The average daily volume is now more than $ 3.2 trillion. The technology of this market has been made available to all, and retail traders have joined the Forex market
The ratio of the margin of the margin (margin margin) is higher than in the equity account, because it is more liquid – almost always a forex price – and is less inclined to instability.
Spread is the difference between the purchase price and the selling price offer, which is negligible in Forex. Just compare the price of 2 pips in EUR / USD to the most active and liquidated net asset value. In addition, prices are usually “good” in Forex, in excess of the large amount of net assets. Spread is a hidden hidden cost of dealing and trading, which is at least forex trading. Technology has provided these exact prices to everyone.
The majority of OTC Forex commissions are free and, with such a small spread, the internal cost of transactions is far lower than that of other net assets, such as equity holders
Equal access to market information in forex
Despite the introduction of best execution rules in Europe and the United States, there are some who disagree with the view that professional traders and market analysts have a big competitive advantage over independent traders. In the forex market, perhaps the only advantage that big banks have is the flow of information. But Forex is a democratic market, in which nearly all participants, like everyone else, have access to the same market information on the move.
Buy Forex before purchase
Stock Brokers offer marginally short sales to their customers. This means that the customer who has no liquidity is able to sell the stock before it has been purchased. Margin-wise, a trader with exactly the same capacity when he begins to buy or sell positions in the spot market of spot deals. In Spot moment deals, when you are selling an asset, you are necessarily buying another currency.