The advantages of trading Forex

Liquidity: In the FOREX market there is always a buyer and a seller. The FOREX
absorbs trading volumes and per trade sizes which dwarfs the capacity of any other
market. On the simplest level, liquidity is a powerful attraction to any investor as it
suggests the freedom to open or close a position at will 24 hours a day.

Access: The FOREX is open 24 hours a day, any individual trader can react to news
when it breaks, rather than waiting for the opening bell of other markets when everyone
else-has the same information. This allows traders to take positions before the news
details are fully factored into the exchange rates.

Two-Way Market: Currencies are traded in pairs, for example dollar/yen, or
dollar/Swiss franc. Every position involves the selling of one currency and the buying of
another. If a trader believes the Swiss franc will appreciate against the dollar, the trader
can sell dollars and buy francs (“selling short’). If one holds the opposite belief, that
trader can buy dollars and sell Swiss francs (“buying long”). The potential for profit
exists because there is always movement in the exchange rates (prices).
This is what helps make the Forex unique since it is possible to profit from both rises or
falls in the price of any given currency!

Trends: Over long and short historical periods, currencies have demonstrated
substantial and identifiable trends. Each individual currency has its own “personality,”
and each offers a unique historical pattern of trends, providing diversified trading
opportunities within the spot FOREX market.

There are many, many other advantages of trading the Forex and we recommend that you
choose your broker wisely since the broker you choose can be critical in determining
your success (or otherwise) when trading currencies online.