Search in Indianmoney's WealthPedia

Home Articles Advantages of Forex Trading over Stocks

Advantages of Forex Trading over Stocks Research Team | Posted On Wednesday, May 09,2012, 03:48 PM

Advantages of Forex Trading over Stocks



Forex market – How it functions?

In the forex market, foreign currencies are exchanged or traded throughout the day. It is the largest financial market as trillions of dollars exchange hands everyday. The forex market opens at 5 pm EST on Sunday and closes at 5 pm EST on the next Friday. As soon as the market opens, you need to invest in currencies and speculate how one currency will move in respect to other currency. You make a profit when you can guess it correctly how a currency will move in respect to another one.

Benefits of forex trading

Accessibility – It is quite easy to get every details of the forex market. It is open for all and anyone can access it from anywhere in the world. Moreover, you don’t have to step out in order to get the required information. You can simply get all the details just by looking at your computer screen. If required, you can take help of brokers and traders to know the real time quotes and the details of transaction. In this way, you can keep yourself updated all the time.

Liquidity in forex– Forex trading offers you the flexibility to open and close positions whenever you want to do it. You can cash in and out whenever you wish to do so.

Leverage in Forex Trading– The forex market offers high amount of leverage. This means that your profit does not depend on how much you invest. It is possible to make huge profit by investing only a small amount. In addition to this, you can also make profit from minor variations in the forex market.

Forex Profit – You can make profit in the forex market both from the rising and falling prices. One way of making profit is to purchase a currency and sell it off at a better rate. Apart from this, you can also make profit by selling a currency and buying it later at a comparatively low price.

See also: How To Open Demat Account?

What is your Credit Score? Get FREE Credit Score in 1 Minute!

Get Start Now!
Get It now!

This is to inform that Suvision Holdings Pvt Ltd ("") do not charge any fees/security deposit/advances towards outsourcing any of its activities. All stake holders are cautioned against any such fraud.