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WHY TRADE Foreign Exchange?
ADVANTAGES OF CURRENCY TRADING
(compared to trading stocks or commodities)
Greater leverage / Less $ required for meaningful results
- Limited currency pairs (vs. thousands of stocks) to consider
- Limited news or other factors to affect prices (vs. what affects stocks)
- Smoother continuous market with no gaps between daily trading sessions
- Largest financial market $2 trillion per day 24 hour market
- No one can corner the currency market: The currency market is so vast and has so many participants that no single entity, not even a central bank, can control the market price for any extended period of time.
- Unlike the equity markets, in the 24-hour forex currency market there are no restrictions on short selling.
- This means an investor has equal potential to profit in a rising or falling currency exchange rate in the foreign currency market.
- not dependant on a bull market
- Free real-time market data available
- Relatively simple and safe techniques to reduce risk and/or add to returns
(e.g. carry trade – interest rate arbitrage to add to gains and reduce losses)
- Low-cost training and education readily available
- On FXCM's Dealing Desk platform, spreads are typically 3-5 pips on the majors, although these spreads may vary depending on market conditions.
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