With the development of people’s living standard, they have more spare money to invest in order to make more money. So how to invest their money becomes the point they are most concerned. After trial, most people will find that forex investment brings more potential to make money; for there are billions of trading volume on a daily basis and it is really able to provide with them more possibilities of making good money. Today I will state why forex investment stands out among so many forms of investment.
1. Profit potential from falling and rising market
In forex investment, traders are able to benefit from both rising market and falling market; for example, if a trader is holding the position of USD/EUR, and he perceives that the USD will depreciate in value relative to EUR, he can choose to exchange USD for EUR and if he perceives that USD will appreciate in value relative to EUR, he can choose to long USD and short EUR simultaneously.
2. commission-free investment
Traders are able to save cost in forex investment because forex investment is commission free. In stock investment, traders need to pay commission fee and other fees but in forex investment, traders only need to pay for spread. Cost of forex investment is lower than other form of investment for traders because they only need to pay for the bid-ask spread.
3. Transparent market condition
Forex investment can be carried out in transparent market condition because of the large market liquidity, which makes it very difficult for any one participant to manipulate or influence the market. Thus, traders enjoy equal chances to get profits from the transparent market condition.
4. Flexible choices of trading account
The restriction of investment amount is limited, almost all people are able to to open Forex account. Traders are able to choose account types according to how much funds they are able to invest, for example, they are able open standard account and mini account according to how much they can afford to invest.
5. Execute forex investment in a sleepless market
People who invest in forex will never have to wait for the opening of forex market from Monday to Friday because forex market opens around the clock. They do not need to worry about missing the trading hours of the day. Unlike stock market, traders have to trade from 9 am to 3 pm every day, if they miss the period, they will miss a trading day. In forex investment, traders are able to trade whenever they want from Monday to Friday.
6. Greater potential of making profits
I believe that making profits is the key purpose of forex investment as well as other forms of investment. Traders are able to use higher leverage to get more profits in forex investment, the leverage they are able to use can be as high as 500:1, which is an advantage of forex investment that other forms of investment cannot compete. But traders should notice one thing: leverage can bring losses as well if they fail to use it properly.
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