Reasons to Trade FX:
24 Hour Trading:
The Forex market is open 24 hours a day, 5.5 days a week. Because of the decentralized clearing of trades and overlap of major markets in Asia, London , and the United States , the market remains open and liquid throughout the day and overnight. As a trader, this allows you to react to favorable/unfavorable news by trading immediately. It also gives traders the added flexibility of determining their trading day.
Liquidity:
The spot Forex market is a $1.4 trillion daily market, making it the largest and most liquid market in the world. This market can absorb trading volume and transaction sizes that dwarf the capacity of any other market. The market is always liquid, meaning positions can be liquidated and stop orders executed without slippage. Most transactions must continue, since currency exchange is a required mechanism needed to facilitate world commerce.
Leverage:
One consistent margin rate 24 hours a day allows Forex traders to leverage their capital more efficiently with as high as 100-to-1 leverage (example: a deposit of 1,000 USD with 100 to 1 leverage would allow an initial currency trade of up to 100,000 USD). The most effective way to manage the risk associated with margined trading is to diligently follow a disciplined trading style that consistently utilizes stop and limit orders. Devise and adhere to a system where your controls kick in when emotion might otherwise take over. In order to help this process, Dealbook FX 2 has many features that assist in staying within a specific strategy or trading model. Click here for a demo.
Commission Free Trading:
In the futures market, traders must pay a spread and a commission. All traded financial products have a ‘bid' (sell) and ‘ask' (buy) price, with the difference defining the spread, or cost of execution. Currency futures traders are more vulnerable to liquidity risk and typically receive wider dealing spreads, especially during after hours trading.
MirusFX and GFT charge no commission or transaction fee to trade currencies online. The over-the-counter structure of the currency market eliminates exchange and clearing fees, which in turn lowers transaction costs. Costs are further reduced by the efficiencies created by a purely electronic market place that allows clients to deal directly with the market maker, eliminating both ticket costs and middlemen. The true cost of the trade is found only in the bid/ask spread of the currency pair you are trading.
GFT is compensated by revenues from its activities as a currency dealer, including proceeds from buying, selling, converting, as well as holding currencies and interest on deposited funds and rollover fees.
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