Why is FOREX trading so popular? Because you can trade from anywhere. From the kitchen table, bedroom, garage or from the nearest Starbucks coffee shop (most have wireless Internet connections).
If you have or like to travel, take your laptop with you and you can trade FOREX anywhere in the world where you have an Internet connection.
When you want to start trading in the Forex Market, no one asks for a diploma, official permission or proof of how many hours you have spent studying the Foreign Exchange Market and/or the Banking Industry.
Economical FOREX Trading and Low Initial Costs!
How to Trade Forex | Forex Trading Examples
You can open an account to trade Forex with as little as US$ 200 at most brokerage firms. I personally recommend Fenix Capital Management, LLC, which offers an advanced Trading platform, which allows you to place orders directly by clicking on the chart.
The Main Benefits of Trading on the FX Spot Market are:
- YOU pay no commissions or fees!
- YOU can trade 24 hours a day!
- YOU can trade up to 400:1 Leverage!
- YOU can get FREE Streaming of live price quotes and charts!
- It is important to know the difference between cash FOREX (SPOT FX) and currency futures.
- In currency futures, the contract size is predetermined.
- With FOREX (SPOT FX), you can trade electronically any amount you want, up to $10 Million USD.
The futures market closes at the end of the business day (similar to the stock market). If important data is released overseas while the US futures market is closed, the next day’s open could sustain a large gap with the potential for large losses if the direction of the futures market does not change. the action goes against your position.
Market Trading Hours and Holidays
The Spot FOREX market runs continuously for 24 hours from 07:00 New Zealand time Monday morning to 17:00 New York Time on Friday evening.
Dealers in every major Forex trading center (Sydney, Tokyo, Hong Kong/Singapore, London, Geneva, and New York/Toronto) ensure smooth transactions as liquidity moves from one time zone to the next.
Additionally, currency futures are only traded in non-USD currency amounts, whereas in spot FOREX, investors can trade almost any currency denomination, or in more conventional USD amounts.
Currency futures, even during Regular IMM (International Money Market) hours experience sporadic liquidity disruptions and constant price gaps.
What is the Spot Market?
The FOREX spot market offers constant liquidity and much more consistent market depth than Futures Contracts. With IMM futures, the currency pairs that can be traded are limited. Most currency futures are traded only versus the USD.
With FOREX spot, you can trade foreign currency vs foreign currency. USD or vs each other ‘cross’, for example: EUR/JPY, GBP/JPY, CHF/JPY, EUR/GBP, and AUD/NZD.
More and more knowledgeable investors and entrepreneurs are diversifying their traditional investments like stocks, bonds & commodities with foreign currencies.
RISK WARNING
Risks of currency trading: Margin currency trading is a very risky form of investment and is only suitable for individuals and institutions who are able to handle the potential losses that may arise.
An account with a broker allows you to trade foreign currencies on a highly leveraged basis (up to around 400 times your account equity).
Funds on a trading account with maximum leverage can be completely lost if the positions held on that account experience a change in value of even one percent, considering the possibility of losing the entire investment. Speculation in the foreign exchange market should only be carried out with risk capital funds whose losses do not significantly affect the investor’s financial well-being.
