The main advantages of Forex Trading

There are mainly five things which give to trade the foreign exchange market unique advantages.
1. Market of 24 hours
As Forex market is global, business is continued until there is a market open in some part of the world. The trading begins as markets open in Australia on Sunday night, and ends when the markets close in New York on Friday.
2. Good liquidity
The Liquidity is ability to become an asset to cash quickly and also without any price reduction. In currencies, this means you can move huge amount of money in and out of currencies with a minimum price movement.
3. Transaction at low cost
In Forex, is typically the cost of doing business is based on the price. It is known as spread. It is the difference in between the purchase and sale.
4. Leverage
Forex brokers permits the traders in the market through investments. Leverage is the ability to exchange more money in the market that is actually the merchant’s account. If for trade with a leverage of 50:1, you could trade in the market for $ 50 for every $ 1 that was in your account. Here you can control a $ 50 000 trade in with only $ 1,000 of capital.
5. Benefit potential from the rise and fall of prices
There is no restrictions for Forex market on trade direction. This means that if you think the currency pair will increase in value, then you have the option to buy or wait for some time. Similarly, if you feel it will decrease then you can sell, or compromise.