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- About Forex
- https://www.ifcmarkets.com/en/about-forex/why-trade-forex Why Trade Forex
Why Trade Forex
Forex operates enormous amounts of money and gives an utmost freedom of opening and closing trading positions at current market quotations. High liquidity is highly attractive side for every investor because it enables the possibility of entering and exiting the market with any volume.
Due to 24 hours a day working pattern, Forex traders do not need to wait to react on an event as it happens in other markets.
A possibility to trade 24 hours a day, regardless a geographical location: you only have to have a computer connected to the Internet. You will do perfectly fine even with a pocket PC, PDA or a mobile phone.
Flexible Management of a Trading Process
A trading position can be open for a pre-set period of time according to the investor's needs, which allows to organize a trading process in advance.
Traditionally Forex has no commission charges apart from the natural Bid/Ask price differential (Spread).
Execution Price Guarantee
Unlike futures or other currency investments, Forex guarantees order execution at the current market price no matter the volume you trade.
Currency fluctuations have a certain overall direction seen even per a short period of time. Each given currency has its own definite fluctuations in time which enables speculations in Forex.
A leverage (“credit shoulder”) on the FOREX market is determined by the agreement between the client and the bank (broker firm) providing a client with an access to the market (normally constituting 1:100). The margin is part of the deposit, which is "frozen" on the customer's account, for the open position. The margin depends on the position volume and leverage. This means, for example, that you can trade volumes of up to $100,000 only having deposited an sum of 1% of the volume ($1,000). The use of such a large leverage and the strong variability of currency quotes make Forex highly profitable (and highly risky). But this is only a mechanism that regulates and sets the trader on your own.