The Benefits of Forex Trading.

[fxquest]

I don't consider this one thing a benefit of forex trading that you stated about making quick money in short time. This can be deadly for new traders and mostly fail only because of the reason to try and earn more in less time. So, be patient and then you will be rewarded.

You are right friend! we should not be overconfident and should never ignore the risk factor, always trade with the good risk management and capital management methods to make consistent returns of forex trading. But it means not that forex is not lucrative or less lucrative, there is really lot more potential than any other trading market.

[pravi]

According to my knowledge there are five main benefits of Forex trading:

1. 24 Hour Market
Since the Forex market is worldwide, trading is continuous as long as there is a market open somewhere in the world. Trading starts when the markets open in Australia on Sunday evening, and ends after markets close in New York on Friday.

2. High Liquidity
Liquidity is the ability of an asset to be converted into cash quickly and without any price discount. In Forex this means we can move large amounts of money into and out of foreign currency with minimal price movement.

3. Low Transaction Cost
In Forex, typically the cost for a transaction is built into the price. It is called the spread. The spread is the difference between the buying and selling price.

4. Leverage
Forex Brokers allow traders to trade the market using leverage. Leverage is the ability to trade more money on the market than what is actually in the trader's account. If you were to trade at 50:1 leverage, you could trade $50 on the market for every $1 that was in your account. This means you could control a trade of $50,000 using only $1000 of capital.

5. Profit Potential from Rising and Falling Prices
The Forex market has no restrictions for directional trading. This means, if you think a currency pair is going to increase in value; you can buy it, or go long. Similarly, if you think it could decrease in value you can sell it, or go short.

Please give your comments on these benefits.

Do you know any other benefit? Please share with us.

I was not able to understand your 3rd point . What do you mean by transaction. What ever we do there is a fixed currency right? I dont think its possible to earn in any other currency. Iam an indian. So i need to convert the profit i earned from dollar which i used to earn to rupees by paying bank the conversion amount right?

[amrikahuja]

there are many benefits of forex trading.... i like time flexibility .. we can trade at our time covenient as forex is open for 24 hours so.... and we can earn extra money without disturbing our main work .... so we can earn handsome income by doing part time ....



















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[kaji]

forex trading is a business that has many advantages, other than those mentioned in this thread. Another advantage of forex trading from anywhere we can, so we have the freedom....

[m3x_19]

Thanks friend from your share on forex advantages than the other market, that's all was really usefull. There are some other advantages that forex have and some market didn't, that advantages are the forex market has not centralized it trading, which means anytime and everyone can trade foreign exchange from all around the world.

[nilesh]

We have some following benefits of forex trading.
1 You can join this business with small capital and earn handsome money.
2 Forex market provides equal opportunity to everyone
3 You can access from anywhere in the world.
4 Open market 24 hours
5 You can earn money according to your capital and trading skills
6 Best time for part time workers.

[HakunaRilious]

The benefits , you learn about the daily media and affecting of prices,indices,stock market and etc and you can predict what is the next fallout or breach and you can warn others about it.

[arihant]

There are many benefits of forex trading . The first thing which is the best thing is any one who are interested in forex trading can learn forex and enter into forex trading and earn a good amount of money . Forex trading learning becomes easier as there are many forums are available where we can get some ideas and strategy about forex . And the college student can also manage for good amount of funds for his study by just doing trading. I love forex trading.

[shinde]

There are many benefits of forex trading . One of this is we can able to make a large amount of money within a very short period of time . A college student who want some funds for continue his study , he can do forex trading and manege good amount of money for his study . And those who tired of doing 5 to 9 jobs then can join forex trading and earn a good amount of money.

[nilesh]

These all things are most attractive features of Forex market.
But the thing which attracts me toward this market is that you can trade at any place wheather you are at home or out of home. You only require internet access to inter in the market. This is very very attractive for me and also for many people. As some people do like to remain home and want a profitable business so it is very suitable for them.