Investment in various stock exchanges and the forex market has seen a dramatic increase in recent years. Let us look at some of the advantages of trading in forex instead of the the stock market.
- Bullish or Bearish? Doesn't matter for Forex Traders.A forex trader can make a profit whether the market is bearish or bullish, unlike the capital market. Forex has no strict regulation in speculation, so a profit can be made through a long-term or short-term transaction. Because the forex market is a double-transaction market, forex traders can make profit in both upward and downward trends.
- Forex Traders control a larger leveraged position.Forex traders can obtain a much larger transaction compared to the stock market, sometimes more than 100 times larger. According to the present US situation, a $1,000 investment in the stock market allows the investor to obtain $2,000 of stock domination property (a proportion of 2:1). It is not unusual for forex traders to execute transactions with a proportion of 100:1, 200:1, or even as high as 500:1.
- Forex Traders can take advantage of fundamentals.Forex traders can profit from the ordinary news, such as changes in interest rates. The forex market is highly-sensitive to the political, financial and cultural developments of various countries, and this volatility creates numerous opportunities for investors.
- Forex is open 24 hours a day, Sunday to Friday.The stock market can only be traded on during daytime at a specific time, generally from 9:30am to 4:00pm. With a full-time job, it becomes difficult to take advantage of numerous trading opportunities. The forex market can be traded on 24 hours a day for 5 days of the week, so forex traders are free to trade during their free time after working hours.
- Forex Traders enjoy greater liquidity.Technical analysis plays a very important role in the forex market, due to the enormous daily trading volume (in excess of US$ 190 billion) - such a large market easily digests any forex trader's transaction cash. Under this situation, the accuracy of technical analysis is better than in any other financial market.
- Forex Traders work with just several instruments.In the stock market, there are hundreds of different kinds of stocks, which makes choosing a stock itself a very difficult decision. The forex market has a limited number of currency combinations; this enables forex traders to better concentrate on their investment, and calculate the return on alternate invesments (other currency combinations).
