The forex market is not only the biggest financial market in the world, it is also one of the most accessible markets to trade on. This marketplace is made up of buyers and sellers from all over the world participating in forex live trading, and offers opportunities suitable for both beginner and experienced traders.
If you’ve been thinking about whether to add forex to your trading portfolio, read on to find out why you should.
The forex market is open round the clock on weekdays, giving you even more opportunities to trade international currency pairs and take advantage of their price movements. Thanks to the business hours of forex exchanges across international time zones, at least one region is operating at any point during the week.
The four major exchanges around the world that start and end the trading day are Sydney, Tokyo, London, and New York — with these exchanges, forex trading starts at 9:00 pm (GMT) on Sunday and ends at 9:00 pm (GMT) on Friday.
Gain exposure to global economic markets
When you trade forex, you’re able to gain international exposure to different global markets depending on the currency pair or basket you trade.
Forex currency pairs are categorised into major, minor, and exotic pairs, and are made up of currencies from all over the world. These three categories have different liquidity levels that represent how actively traded the currency pairs are.
You can also trade currency basket indices. These indices measure the value of one currency against a basket of five other equally weighted global currencies, increasing your exposure to even more global markets at the same time.
Trade a highly liquid market
Liquidity refers to how quickly an asset can be bought and sold. When a market is highly liquid, it basically means that there are lots of buyers and sellers trading at any point, leading to a higher trading volume and lower transaction costs as traders seek to complete transactions easily and quickly.
The forex market is one of the most liquid in the world, with over 6 trillion USD traded daily. With the large number of active trades happening every day and low costs, it becomes easier for traders to enter the forex market and start trading.
Profit from both rising and falling prices
Options trades are timed, so you’ll be predicting market movements within a specific time period. On the other hand, CFDs trades can stay open for as long as you want to take advantage of market movements (as long as you have sufficient funds in your account to cover potential losses in case the market moves against you). With multipliers, you’ll get to multiply your potential profits without losing more than your stake.
Start trading with low capital requirement
Thanks to the highly liquid nature of the forex market and low transaction costs, you can open a forex trade even with relatively low capital. On any of the numerous trading platform ( like, Deriv, metalthader5, Express trade etc..) all you need is a 10 USD deposit into your account, and you can start trading forex on any of the platforms.
Make the most of high leverage
You can as we decide to trade major, minor, and exotic currencies with high leverage. Trading with leverage gives you more market exposure by allowing you to trade more than your capital allows. This means that you get to open a trade that’s worth more than your stake. For example, with a leverage of 1:10 and a stake amount of 100 USD, you’ll get to open a trade that’s actually worth 1,000 USD.
The profit or loss you make at the end of your trade is based on the trade’s full value, so trading with leverage allows you to maximise your capital and increase your potential profits. However, do note that this also means that potential losses are also increased.
Take advantage of tight spreads
A spread is the difference between the bid and ask prices, and represents the cost to open a CFD trade. These are determined by the broker and are calculated in pips, which are small price movements of an asset.