Why is FOREX trading so popular?
Because you can trade from anywhere. From your kitchen table, bedroom,
garage or from the nearest Starbucks coffeehouse ( 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
for a diploma, a formal license or a proof of how many hours you have
spent studying the Foreign Exchange Market and/or Banking Industry.
FOREX Trading is Economical and Start-up Costs are Low!
You can open an account to trade Forex with as little as US$ 200 at he most brokerage firms.
I personally do recommend Fenix Capital Management, LLC, which offers a
state of art Trading platform, that allows you to place orders directly
by clicking on the chart.
The Main Benefits of Trading the FX Spot Market are:
YOU don't pay commissions or fees!
YOU can trade 24-hours a day !
YOU can trade up to 400:1 Leverage !
YOU can have FREE Streaming executable Price quotes and live charts!
It is important to know the differences between cash FOREX (SPOT FX) and currency futures.
In currency futures, the contract size is predetermined.
With FOREX (SPOT FX), you may trade electronically any desired amount, up to $10 Million USD.
The futures market closes at the end of the business day (similar to
the stock market).If important data is released overseas while the U.S.
futures markets is closed, the next day's opening might sustain large
gaps with potential for large losses if thedirection of the move is
against your position.
The Spot FOREX market runs continuously on a 24-hour basis from 7:00 am
New Zealand time Monday morning to 5:00 pm New York Time Friday evening.
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 the next.
Furthermore, currency futures trade in non-USD denominated currency
amounts only, whereas in spot FOREX, an investor can trade in almost
any currency denomination, or in the more conventionally quoted USD
amounts.
The currency futures pit, even during Regular IMM (International Money
Market) hours suffers from sporadic lulls in liquidity and constant
price gaps.
The spot FOREX market offers constant liquidity and market depth much more consistently than Futures.
With IMM futures one is limited in the currency pairs he can trade. Most currency futures are traded only versus the USD.
With spot FOREX, you may trade foreign currencies vs. USD or vs. each
other on a 'cross' basis, for example: EUR/JPY, GBP/JPY, CHF/JPY,
EUR/GBP and AUD/NZD
More and more well informed investor and entrepreneurs are diversifying
their traditional investments like stocks, bonds & commodities with
foreign currency because of the following reasons: (will be continued)
RISK WARNING:
Risks of currency trading: Margined currency trading is an extremely
risky form of investment and is only suitable for individuals and
institutions capable of handling the potential losses it entails. An
account with an broker allows you to trade foreign currencies on a
highly leveraged basis (up to about 400 times your account equity). The
funds in an account that is trading at maximum leverage may be
completely lost if the position(s) held in the account experiences even
a one percent swing in value, given the possibility of losing one's
entire investment. Speculation in the foreign exchange market should
only be conducted with risk capital funds that, if lost, will not
significantly affect the investors financial well-being.
