If you are someone who is new to Forex then you must be wondering what on earth this term means and how does it affect your normal life? Forex is not much different from your regular stock market, although in some aspects, it differs too. Go through the points below:
In stock markets, you bet against the shares of the same currency where in Forex you bet against the value of currencies. In both the markets, same rule applies; buying at low and selling at high prices. Forex differs from stock market in one point that in forex going long (betting on a rising price) and going short (betting on falling prices) are equally easy.
Once in your life, you have definitely behaved as a Forex trader and do not even know about it. Whenever you exchange your currency against the currency of any other country after confirming price from many traders and clinching a deal with the one who paid you more, is very much a forex trading.
Forex trading is really exciting and is open to all. Here are a few features of forex trading:
The Forex Market is Huge
Because of its size that it is relatively outlandish for the administrations and the law organizations to track it and tie it under any run the show. The day by day turnover of the market is required to go past $3.98 trillion which is more than the New York and London Stock Exchanges set up together.
It has unmatched liquidity
As forex is accessible 24*7 from anywhere and as all the countries are involved in the trading, the market has unbeatable liquidity. When major corporations and banks are trading here, there is enough room for you.
Open to everyone
The market is open to everyone and it is bound to a certain genre of people.
There is No Central Control in Forex
Forex has no centralized market or regulatory control. The Internet makes it easy to participate in forex via computers linked to brokers, banks and other traders around the world. Regulation is administered locally wherever banks and brokerages are registered, which means you enjoy the protection of local regulatory authorities without the limitations of central control.
Forex Offers Unparalleled Leverage
Forex allows you to make big profits while risking small amounts of money. Here at “YO FX” you can trade with leverage as high as 1:500 if you want. But you don’t have to gear your trades that high if you prefer lower levels of risk.
The Forex Market Offers 24/5 Accessibility
Forex trades can be made 24 hours a day, 5 days a week. The market runs non-stop from 20:15 GMT on Sunday until 22:00 GMT on Friday.