Learning Forex (Preschool) - Why Trade Forex? - Deepstash
Learning Forex (Preschool) - Why Trade Forex?

Learning Forex (Preschool) - Why Trade Forex?

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Why Trade Forex: Advantages Of Forex Trading

Here are just a few reasons why so many people are choosing this market:

  • No fixed lot size lot or contract sizes are determined by the exchanges
  • Low transaction costs
  • A 24-hour market
  • No one can corner the market The FX market is sufficiently liquid that significant manipulation by any single entity is all but impossible during active trading hours for the major currencies.
  • Leverage
  • Deep Liquidity Extremely liquid
  • Low Barriers to Entry 
  • Free Stuff Everywhere! You can use DEMO account

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Why Trade Forex: Forex vs. Stocks

  • With forex, there are dozens of currencies traded, but the majority of market players trade the seven major pairs.
  • Most forex brokers are open from Sunday at 5:00 pm EST until Friday at 5:00 pm EST, with customer service usually available 24/7.
  • Most forex brokers charge no commission or additional transaction fees to trade currencies online or over the phone.
  • Higher Trading Volume and Liquidity
  • Unlike the equity market, there is no restriction on short selling in the currency market.
  • Minimal Market Manipulation
  • Analysts and brokerage firms are less likely to influence the market

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Why Trade Forex: Forex vs. Futures

  • The futures markets can’t compete with its relatively limited liquidity while the forex market is always liquid.
  • 24-Hour Market
  • Minimal or no commissions
  • When trading forex, you get rapid execution and price certainty under normal market conditions. In contrast, the futures and equities markets do not offer price certainty or instant trade execution.
  • Risk is minimized in the spot forex market because the online capabilities of the trading platform will automatically generate a margin call if the required margin amount exceeds the available trading capital in your account.

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CURATOR'S NOTE

I want to make summary of what I have learned about Forex so that I can refresh it again.

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