Forex Capital Markets Llc
How to start trading the Forex Market? (Part 3)
10 REASONS TO START FOREX Trading!
More and more knowledgeable investor and entrepreneurs are diversifying their traditional investments like stocks, bonds and commodities with foreign currency for the following reasons:
1) FOREX is the largest financial market in the world.
With a daily volume of more than $ 1.5 trillion, the spot FOREX market can absorb trading sizes dwarf the capacity of any other market. In fact, compared with 50 billion U.S. dollars market day for the stock or futures market 30 billion dollars, it becomes quickly apparent this gives you, and millions of other traders in the currency, almost infinite trading liquidity and flexibility.
2) FOREX is a real market for 24 hours.
The FOREX market never sleeps. Negotiating positions can be in and out at any time throughout the world, all day 5.5 days a week. Do not wait for an opening bell as in the case of commercial stocks. This is a 24 – hour, continuous electronic (on line) currency exchange that never closes. This is very convenient for you if you want to operate on a part-time, because you can choose when you want to change: morning, noon or night.
3) There is never a Bear Market in FOREX.
You can have access to a seamless exchange of currencies. Currencies trade in "pairs" (Eg U.S. dollars vs JPY (YEN) or U.S. dollar against CHF (Swiss franc), one side of each pair of currencies (eg USD / CHF) is constantly movement in relation to the other. Therefore, when you buy a particular currency, you are actually simultaneously selling the currency in the pair in particular. As the market, one of the currencies will increase in value compared to the other. Of course, it depends on you to choose the correct currency to be long (bought) or short (which sold).
4) High Leverage – Leverage up to 400:1.
You are allowed to trade foreign currencies on a highly leveraged basis – up to 400 times your investment with Fenix Capital Management, LLC and with some other runners.
Standard 100,000 – U.S. $ currency lots can be traded with as little margin of 0.25%, or $ 250.
Mini FX accounts are permitted to trade with just 0.25% margin, ie, only $ 25 lets you control a position in the currency of 10,000 units.
Futures traders, who are accustomed to margin requirements generally equal to 5-7% -8% of the contract value, will immediately recognize that the foreign exchange market a much greater support, and for stock traders, who must post at least 50% margin, there is no comparison. If you are looking for an efficient use of trade, commerce Forex Market.
5) Price movements can be very predictable.
prices of currencies in the forex market usually relatively cycles are repeated predictable, creating trends. The strong trends that foreign currencies develop are a significant advantage for traders who use the "technical" methods and strategies.
Unlike stocks, currencies tend to develop strong trends. Over 80% of volume is speculative in nature and, therefore, often beyond the market then corrects itself. As a technically competent, you can easily identify new trends and breakouts, to enter and exit positions.
6) You pay no commissions or fees to trade FOREX
When you trade FOREX, through Fenix Capital Management LLC (FCM), you can completely free of commissions and fees, regardless of the size of your account.
Fenix Capital Management LLC, requires a minimum too low to open a brokerage account, only U.S. $ 200 and do not charge commissions or fees to trade or to maintain an account, regardless of your account balance or trade volume.
7) Do not have to pay trading fees or exchange rates.
There are none of the normal fees, which merchants and equity futures are used to pay:
NO exchange or clearing fees,
NO NFA or SEC fees.
Given that currency trade counter (OTC), through a global electronic network, in FOREX, what you see on the screen trade, is what you get, allowing you to make decisions rapid in their operations without having to worry or account fees that may affect your profit / loss or slippage.
In the equity markets and commodities, must pay both a commission and exchange fees. The sales structure of the FX market eliminates exchange and clearing fees, which in turn reduces transaction costs.
How to Forex Brokers make money if they do not charge commissions?
Like all traded financial products, -counter currency trading involves a purchase / sale, which represents the price at which your counterpart is willing to trade. Your agent will receive a portion of this purchase / Sale.
Because it offers the foreign exchange market liquidity all day-they get tight spreads, competition intra-day and night. retailers to stock may be more vulnerable to liquidity risk and typically receive wider trading spreads, especially during after-hours trading.
9) Market transparency.
Market transparency is highly desired in any trading environment. The greater the market transparency, the market more efficient becomes. Unlike other markets where transparency is compromised (as in many recent scandals), Forex Markets are highly transparent (ie country research analysis, and have real time access / news, is easier than analyzing companies).
Because of this transparency, as an FX trader, you will be able to apply risk management strategies according to their fundamental and technical indicators.
10) performance Instant orders
The FX market offers the highest level of market transparency of all financial markets. Because of this, order execution and full confirmation usually occur in just 1-2 seconds.
In Forex, the execution of orders is fully electronic and because you develop a business through an Internet-based platform, instantaneous execution is routine.
There are no exchanges, no traditional outcry pits, no floor brokers, and consequently, no delays. (To be continued)
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