When choosing the financial market to trade on, traders look for the best risk and rewards conditions and optimal trading scenarios. Foreign currency exchange market is a place that satisfies these kinds of criteria. Retail investors are turning to it more and more for the advantages it presents. It is open 24 hours, provides an ability to go either long or short, it is very liquid and does not requires huge investments. Like other markets, it has its own learning curve, but it is not as complicated as some other markets’ learning curves.
Key Takeaways:
- The foreign exchange market is open 24 hours a day, five days a week – forex can be traded from 9pm Sunday to 10pm Friday (GMT).
- Each day, over $5 trillion dollars of currency is converted by individuals, companies and banks – and the vast majority of this activity is intended to generate a profit.
- Leverage in forex enables you to open a position on the currency market by paying just a small proportion of the full value of the position up front.
“While you can go short on other markets by using derivative products, such as CFDs, short selling is an inherent part of trading forex. This is because you are always selling one currency (the quote currency) to buy another (the base currency).”
Read more: https://www.ig.com/en/forex/benefits-of-forex-trading
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