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Benefits of Forex Trading Research Team | Posted On Saturday, May 02,2009, 03:06 PM

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Benefits of Forex Trading



Online Forex trading  is a speedy way to use your investment capital to its fullest. The Forex markets present distinct advantages to the small and large traders alike making Forex currency trading in many ways preferable to other markets such as stocks options or traditional futures. Here are some of the important benefits of online forex trading.

Forex is the largest market.

Forex trading volume is more than 1.9 billion more than 3 times larger than the equities market and more than 5 times bigger than futures; give Forex traders nearly limitless liquidity and flexibility.
     No Bulls or Bears!
Because Forex trading online involves the buying of one currency while simultaneously selling another you have an equal opportunity for profit no matter which way the currency is headed. Another advantage is that there are only around 14 pairs of currencies to trade as opposed to many thousands of stocks options and futures.
    Forex Trading online offers great leverage
You can make the most of your investment income with Forex trading online. Some brokers offer 200:1 margin ratios in your trading accounts. Mini-FX accounts which can naturally be opened with only $200-300 offer 0.5% margin meaning that $50 in trading capital can control a 10,000 unit currency position. This is why people are flocking to Forex trading online as a way to highly leverage their investments.
See also: How To Open Demat Account?
    Forex prices are predictable.
Currency prices though unstable tend to create and follow trends allowing the officially trained Forex trader to spot and take benefit of many entry and exit points.
    Forex trading online is commission free
No commissions no exchange fees or any other hidden fees. This is a very transparent market and you will find it very easy to research the currencies and the countries concerned. Forex brokers make a small percentage of the bid/ask spread and that's it. No longer have any needed to compute commissions and fees when executing a trade.
See Also: Foreign Exchange Market In India
    Forex trading online is instant.
The FX market is superbly speedy. Your instructions are executed filled and established regularly within 1-2 seconds. Because this is all done electronically with no humans concerned there is little to slow it down. Forex trading online can get you where you want to go earlier and more helpfully than any other form of trading.

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