There are many advantages to Trading FOREX as your main income generator. Let’s start by something that may be worrying you already. “Do I need a Diploma or some kind of Certification to trade FOREX?” The answer is this: When attempting to make more profit than losses on
fluctuation of exchange rates between major currencies (i.e., Trading FOREX), nobody is going to ask you for a diploma, a formal license or verify amount of hours you've spent studying Foreign exchange market and banking industry. All you need is proper training, you can get very valuable sources for this training at http://www.1-forex.com. But this is not only advantage you get when trading FOREX, compared to other ways of investment and speculation; i.e. Stocks and Commodities. You have a whole bunch of advantages over these other options that will be enumerated in following paragraphs.The Main Benefits of Trading FX Spot Market:
1): FOREX is largest financial market in world.
With a daily trading volume of over $1.5 trillion, spot FOREX market can absorb trading sizes that dwarf capacity of any other market. In fact, when compared with $50 billion daily market for equities or $30 billion futures market, it becomes quickly apparent this gives you, and millions of other FOREX traders, almost infinite trading liquidity and flexibility.
2): FOREX is a TRUE 24-hour market.
The FOREX Market never sleeps. Trading positions can be entered and exited at any moment - around globe, around clock, six days a week. There is no waiting for an opening bell as in case of trading stocks. It is a 24- hour, continuous electronic (ONLINE) currency exchange that never closes. This is very desirable for you if you want to trade on a part-time basis, because you can choose when you want to trade: morning, noon or night.
3): There is never a Bear Market in FOREX.
You can have access to a seamless, mutually-inclusive (two- way) exchange of currencies. Meaning, because currencies trade in "pairs" (for example, US dollar vs. yen or US dollar vs. Swiss franc), one side of every currency pair (for example, USD/JPY - JPY = YEN) is constantly moving in relation to other. Thus, when you buy a particular currency, you are actually simultaneously selling other currency in that particular pair. As market moves, one of currencies will increase in value versus other. Of course, it is up to you to choose correct currency to be long or short. Since currency trading always involves buying one currency and selling another, there is no structural bias to market. This means you have equal potential to profit in both a rising or falling market.
4): High Leverage - up to 200:1 Leverage.
You are permitted to trade foreign currencies on a highly leveraged basis - up to 200 times your investment with some brokers. This is primarily attributed to higher levels of liquidity within currency markets. Standard 100,000- unit currency lots can be traded with as little as 1% margin, or $1,000. Mini FX accounts are permitted to trade with just 0.5% margin -- in other words, just $50 allows you to control a 10,000-unit currency position. Futures traders, who are accustomed to margin requirements generally equal to 5%-8% of contract value, will immediately recognize that FOREX market provides much greater leverage, and for stock traders, who must post at least 50% margin, there’s no comparison. If you’re looking for an efficient use of trading capital, this is it!
5): Price Movements Are Highly Predictable.
Although currency prices in FX market may be volatile, they generally repeat themselves in relatively predictable cycles, creating trends. The strong trends that foreign currencies develop are a significant advantage for traders who use "technical" methods and strategies taught at sources found in http://www.1-forex.com
