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7 REASONS TO TRADE FOREX

7 REASONS TO TRADE FOREX

7 REASONS TO TRADE FOREX

There are many online money making opportunities advertised across the internet, and sometimes it is hard to separate the legitimate opportunities from the scams.  One type of online investing that is gaining in popularity is Forex Trading, which is short for foreign exchange trading, or also known as currency trading.

Forex trading has many advantages which includes offering the flexibility of allowing you to trade from any location as long as you have an internet connection, and pretty much at any time as the market is open 5 days a week, 24 hours a day.

Below is a summary of seven reasons why you might want to check out forex trading for yourself.

Forex trading provides high leverage.  Put another way most forex brokers allow you to trade or control a large currency position with a minimal capital outlay.  For example most brokers offer leverage of from 100:1 to 500:1.  A trader using just 100:1 leverage can trade a standard lot ($100,000) with a capital balance of $1000.  You can trade a standard of $100,000 currency lot by investing with a small capital of only $1000.

Most Forex brokers have fairly low transaction charges compared to other types of investing such as stocks.

Forex markets are fairly transparent, meaning for the most part there are no hidden transaction charges.  This allows a trader to manage their risk effectively, and execute orders within seconds if you want to get out of a particular trade quickly to limit losses.

Forex trading allows you to buy or sell a currency pair, thus you can trade in either direction.

Forex offers great flexibility in terms of trading hours.  The market is open 5 days a week for 24 hours a day.  Thus there are always trading opportunities available no matter what time frame you live in, or what your schedule is like.  You can trade whenever you have the time as long as you have a laptop and an internet connection.

As you gain experience one has the potential to start earning profits from their forex trading.  If you can consistently generate small profits over the long term these profits can eventually increase exponentially as your trading account grows and the size of each trade grows.

Forex is the largest market in the world, with the most liquidity.  The currency markets have a daily trading volume of $1.5 trillion dollars.  There will never be issues executing trades of almost any size and having those trades filled in less than a second in most cases.

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