subject: FX Trading: An Overview [print this page] *It is a 24-hour trading market*It is a 24-hour trading market. Trading continues round the clock. Therefore, you have more time at hand to exercise your strategies and manage your risks. You can trade as long as some market somewhere in the world remains open.
*The transaction costs for trading in foreign exchange is quite low. In most cases, the transaction cost is built into the price and is commonly known as the spread. Therefore, the gap between the buying and selling price is known as the spread.
*You can use leverage over and above what you have in your account. This can enable you make more money. Supposing you have a 50:1 leverage and you have $1000 in your trading account. Then you can use 50 times the same amount that is $50,000 for trading purposes. This is a unique advantage that can attribute to substantial gains.
*When you trade in forex, you can take advantages from rising as well as falling prices. There are no restrictions for directional trading in forex trade. If you gauge that a currency pair will prove to be profitable, you can either buy or go long. Similarly, if a pair is about to decrease, you can sell or go short.
*Forex markets enable high liquidity. Large amounts of money can be moved in and out of several currencies with fractional price fluctuations.
FX Trading: An Overview
By: Monther Crazel
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