| As a result of global market players, the Forex | | | | can also be quite small in major currency. Unlike |
| market is open 24 hours a day. This can enables | | | | stock, once you buy you have to pay commission to |
| investors or traders to correct their positions at any | | | | your broker. It is usually a certain percent of the |
| time. Because of the large number of players like | | | | total amount of stock purchase. |
| Banks, Institutions and Hedge Fund Managers etc, the | | | | Forex trading can involves in Long (buy) or Short |
| Forex market has narrow spreads and nearly no price | | | | (sell). It is just easy to take a short position as a long |
| gaps. This lack of price gaps enables investors to | | | | one. Unlike stock, there are some limitations imposed |
| count on no-slippage order execution. However do | | | | on selling short. Therefore forex trader can easily |
| take note that in a very volatile market the likelihood | | | | trade in a rising or falling market. |
| for slippage do exists. | | | | Forex trading involves leveraging too. With more |
| The Large volume of participants in Forex also | | | | buying power, you can increase you total return on |
| reduces the chance for insider information or trading. | | | | investment with less cash upfront. However |
| Base on history, there has never been a case of | | | | increasing your leverage also increase risk. E.g. With |
| complete currency collapse in a developed country. | | | | $1000 cash in a forex broker account that allows |
| Forex volatility in the market rarely exceeds 1% per | | | | 200:1 leverage, you can easily trade up to $200,000 |
| day unlike stock which can fluctuate up to 10% over | | | | in estimated value. |
| one trading session. | | | | In conclusion, Forex Trading offers a good option to |
| Trading in the Forex market has the benefit of no | | | | make money in a 24 hours market. It provides |
| transaction cost. Meaning forex brokers do not | | | | leverage, low commission and low amount to start. |
| charge commissions. If they do it is usually relatively | | | | There is also no insider trader to control the market. |
| small. What you pay is only the bid/offer spread | | | | Last but not least you can also trade in a rising or |
| which can be view as transaction cost. Forex spreads | | | | falling market. |