It's a 24- hour, continual electronic ( ONLINE ) foreign exchange that never closes.
This is really fascinating for you if you need to trade on a part-time basis, as you can select when you wish to trade : morning, midday or night. Three ) there's never a Bear Market in Currency exchange . You may have access to a seamless exchange of currencies. Currencies trade in'pairs' ( as an example, US buck vs. JPY ( YEN ) or US buck vs. CHF ( Swiss franc ), one side of each currency pair ( for instance, $ / CHF ) is continually moving re the other. So, when you purchase a selected currency, you are really at the same time selling the other currency in that particular pair. As the market moves, one of the currencies will increase in worth vs the other. Naturally, it is up to you to select the proper currency to be long ( you purchased ) or short ( you sold ). Four ) High Leverage - up to 400:1 Leverage. You're allowed to trade foreign currencies on a very leveraged basis - up to four hundred times your investment with Fenix Capital Management, LLC and with some other brokers.
Standard 100,000- US$ currency lots can be traded with as little as 0.25% margin, or $250. Mini FX accounts are allowed to trade with just 0.25% margin, meaning, just $25 lets you control a 10,000-unit currency position. Futures traders, who are used to margin needs typically equivalent to 5-7%-8% of the contract worth, will instantly recognize the currency market provides much bigger leverage, and for stock traders, who need to post at least fifty percent margin, there is no comparison. If you are searching for an efficient use of trading, trade the currency market. Five ) movements in prices could be Highly Predicted . Currency costs in the FX market often repeat themselves in comparatively predicted cycles, making trends. The robust trends that foreign currencies develop are a serious advantage for traders who use the'technical' techniques and secrets.
Unlike stocks, currencies have the disposition to develop robust trends. Over eighty percent of volume is speculative in nature and, as a consequence, the market often overshoots and then corrects itself. As a technically-trained trader, you can simply identify new trends and breakouts, to enter and exit positions.
Six ) you do not pay commissions or costs to trade Currency exchange When you trade Currency exchange, thru Fenix Capital Management LLC ( FCM ) you can do it fully freed from commissions and costs, without reference to your account size. Fenix Capital Management LLC, needs a particularly low minimum amount to open a brokerage account, only US$ 2 hundred and they don't charge commissions or costs to trade or to maintain an account, with no regard for your account balance or trading volume. 7 ) you do not have to pay trading costs or exchange charges. There are not one of the common charges, which futures and equity traders are used to pay : NO exchange or clearing costs, NO NFA or SEC charges.
Because currencies trade over the counter ( OTC ), through a worldwide electronic network, in Foreign exchange, what you see on your trading screen, is what you get, permitting you to make fast choices on your trades with no need to worry or account for costs which will have an affect on your profit / loss or slippage. In the equity and commodity markets, you need to pay both a commission and exchange charges. The over the counter structure of the FX market eliminates exchange and clearing charges, which in turn lowers exchange costs. Eight ) ways to Currency exchange brokers make cash if they do not charge commissions? Like all traded money products, over-the-counter currency trading involves a bid / ask spread, which represents the costs at which your counterpart is prepared to trade. Your broker will get a part of this bid / ask spread.
As the forex market offers round the clock liquidity, you receive tight, competitive spreads both intra-day and night. Traders can be more exposed to liquidity risk and usually receive wider trading spreads, particularly during after-hours trading. Nine ) Market Transparency. Market transparency is highly desired in any trading environment.
The bigger the market transparency, the better the market becomes. Unlike other markets where transparency is compromised ( like in the numerous up to date scandals ), Currency exchange markets are highly clear ( i.e, researching nations, and having access to real-time research / news, is less complicated than investigating corporations ). Due to this transparency, as an FX trader, you'll be able to apply risk management methods in accordance to your elemental and technical indicators. Ten ) Immediate Order Execution The FX market offers the top level of market transparency out of all of the fiscal markets. Due to this, order execution and fill confirmation sometimes happen in just 1-2 seconds.In Currency exchange, order execution is all-electronic and because you will be trading through an Internet-based platform, instantaneous execution is routine. There are no exchanges, no standard open-outcry pits, no floor brokers, and therefore, no delays.