What is forex and the Forex Market?
The basics of Forex is exchanging one currency for another one. There is no central marketplace for forex exchange and forex is traded worldwide among the major financial centers such as London, New York, Tokyo, Frankfurt, Hong Kong, Singapore and Sydney etc. Forex market is open for 24 hours a day, five days a week except weekends and holidays. Forex market is the largest financial market all over the world in terms of trading volume, which is billions of dollars on a daily basis.
What are the advantages of trading forex in forex market?
Forex market attracts more and more forex traders to try trading Forex; what is the reason? There are several distinguished advantages of forex market:
1. As I said above, the trading volume in forex market is huge; it definitely indicates that it is more possible for Forex traders to get profits because of the high liquidity; however, it also means that it is rather easy for them to lose due to the liquidity.
2. Traders have flexibility in choosing trading time because forex market is open for 24 hours a day except weekends. Thus, some traders choose to trade forex full-time and some others trade forex as part-time traders.
3. The low commission fee provided by forex market compared with other financial markets enables traders to save a lot of money.
4. Using leverage attracts a large number of forex traders because it provides potential of making more profits with a small amount of investment.
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