What is Forex and What are the Advantages of Forex Market?
Forex is the one of the largest financial markets all over the globe in which you can trade one currency into the other. Forex is quite a simple term. It is the global market that will allow you to buy and sell one currency pair into another.
The trading of currency is conducted electronically Over-The-Counter (OTC). This means that all the transactions are done via a network that is between traders all over the globe. This market is open to all. It implies that the centralized exchange is not done on one and one basis, which is an added advantage in the foreign exchange market. This market is open for 24 hours a day and five and a half days a week and currencies are traded worldwide in the major financial centers.
Advantages of Forex Market
Trading in forex has its advantages which lead people to prefer it over other, Listed below are some of the major ones:
Most of the Forex brokers are compensated in the services by using the spread in the currency pairs. In forex trading there are no clearing fees and the exchange fees and brokerage charges.
Variable Lot Size
In the Forex Market there are no fixed lot sizes and contract sizes. The trader will determine their own lot and the position sizes according to the currency pairs prices.
Low Transaction Cost
In the Forex Market there is no transaction cost it will depend on the leverage and spread into the currency pair.
24-Hour Open Market
The forex is the 24-Hours open market there is no opening bell in the forex. It will be open from the monday morning in Australia and close to the afternoon according to the New York session.
Forex trading is the most liquid market. There are several advantages under the normal market conditions. On a single click you will buy and sell the currency pairs and there will usually take the profits according to the market movements.