When discussing about the various ways of investing, there is one type of investment that will appear in our minds, namely forex or foreign exchange. What are the advantages of trading forex versus other investment options?
The Foreign Exchange Market or Forex (Foreign Exchange Market) have many advantages compared to other investment model. The Forex market operates 24 hours every day, different from the stock market, of course. Forex trading can be done anytime as long as you have a computer and internet access, as well as the ability to start trading Forex.
Some models require the amount of capital investment before you can dredge the advantages of an investment. But for Forex transactions, you need only a relatively small capital. Anyone can enter the Forex market with a minimum capital of $ 300 to open a mini account. By having a mini account, you are allowed to enter the Forex trading lot up to 10,000 units. One lot of 10,000 currency unit equivalent to one contract. Each pip, or the ups and downs of the currency pair, is equal to $ 1 profit or loss, depending on which side of your position in the trade. A standard account would normally only allow 10,000 currency units and one pip is equal to $ 10.
The Forex market also have properties very liquid. When trading begins, you have complete control of your capital. Other types of investments typically require you to hold your money in a long period of time. This is certainly going to hurt you because if you need to use the capital, would be very difficult to access it.
In Forex, a trader still has a chance of gaining an advantage in both bullish and bearish situation. Another case with the investment market stocks, stockbrokers have to wait until the stock price rises to be profitable. Forex traders can benefit both the current trend rising or trending down. Forex trading can be risky, but has the ability to put together a good system, good money management capabilities, and high discipline, Forex trading is an investment with a minimal risk.
One important thing to keep in mind before you start trading currencies in the Forex is a practice with "fake money". Brokers usually have a demo that you can download and you can practice trading with him. Does this not surety such exercises for you to succeed with real money, but certainly, there are many benefits of exercise with the fake money to traders who later became better prepared and better. The internet is also an awful lot of Forex courses, but you also need to be observant to determine which course provider which you will follow.
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