17 November 2009

Advantages and disadvantages of Forex

Advantages of Forex

High leverage. Since 500:1 Forex market offers traders a high leverage. This means that by investing a small amount of money, you can get great benefits by trading the currency you like.

No commission. In the Forex market does not have any form of commission.

Highest liquidity. A large number of currencies (7 major pairs of currencies), and international trade stipulate price stability, a slight decline, small spreads and high liquidity.

Profitability. In the Forex market is not organized prejudice exists, and all investors have the same chance to profit.

Forex is open and online 24 hours a day 5 days a week. You can enter the market when it is convenient to you.

Disadvantages of Forex.

High leverage. While high leverage one hand attracts traders in the market, it can provide constraints on the other. After high leverage linked high levels of risk.

Hour market. While traders are comfortable that the market is always open, it can also be a drawback Forex. Traders trading without the help of brokers, it is very difficult to track information on the market.This is where you need the professional broker. there are many brokers online. just choose the one that is regulated and famous.

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