Whether you are just entering the world of Forex trading, or you’ve got some experience in that industry, it’s always good to know why it is so beneficial these days. Many people are eager to learn trading according to the fact that it can provide huge profits.
Today, everyone can become a good Forex trader thanks to many educational materials, relevant forex broker reviews, comments on forums by traders, etc. It’s not rocket science to get into this business. All that is necessary is discipline and goodwill.
However, what if someone is still wondering whether to jump into all of that or quit? More than 85% of traders left the Forex market due to significant losses and considerable risks in the first couple of months. If that’s the case with you, we’ve provided you with all the benefits of this type of business.
Here are all the important reasons for making the Forex trade.
1. There Is No Fixed Lot Size
The exchanges in the futures markets significantly determine contract or lot sizes. Here is one crucial example. One contract of a standard size for silver futures equals 5,000 ounces.
When it comes to Forex, you are allowed to trade position size or smaller lot sizes. It’s crucial to know since it will enable traders to open small trades, like 1,000 units.
2. Transaction Costs Are Meager
Usually, the bid/ask spread or retail transaction costs are less than 0.1%. Of course, if we are speaking about the normal market conditions, otherwise, it wouldn’t be the case. For transactions that are larger than usual, the spread will often be about 0.07%.
Keep in mind that it all depends on the leverage that you possess.
3. It’s A 24 Hours Available Market
One of the most significant advantages of making Forex trade is its lucrative market known as the most effective financial, decentralized market. What’s even more important advantage is that it is open 24 hours a day. Of course, from Monday to Friday, which is five days a week.
It’s essential to remember that since many traders are eager to do Forex trading as their part-time job, in their spare time. Additional money is always welcome.
4. Leverage Enables Traders To Make Large Profits
Speaking of Forex trading in general, it’s crucial to focus on leverage that enables traders to make huge profits. It means that in this type of business, a small deposit can control a significantly larger total contract value.
Besides making huge profits achievable, don’t forget that leverage is also able to keep risk capital to a bare minimum.
5. Extremely Liquid Market
As we have said previously in this article, its market is available 24 hours a day, five days a week. It makes it highly convenient and liquid for traders who want to trade their currency pairs whenever they want.
Liquidity, in this case, comes as a great advantage since, in the customary market conditions, you are able to buy and sell instantly, just by clicking with your mouse. You are never stuck in a trade, which sounds impressive.
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