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Apart from equity and commodity market, foreign currency is another market that people use to trade and earn money increasing their wealth. Yes, Forex trading is also very popular globally with the huge volume of currency trade daily. In forex trading the fluctuations in currency exchange rates, gives an opportunity for traders to take advantage of price change and make some profit. The currency market is different from equity and commodity trading and has its own pros and cons. Today we will talk about the advantages and disadvantages of forex trading.
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Advantages and Disadvantages of Forex Trading: How to Start? Apart from equity and commodity market, foreign currency is another market that people use to trade and earn money increasing their wealth. Yes, Forex trading is also very popular globally with the huge volume of currency trade daily. In forex trading the fluctuations in currency exchange rates, gives an opportunity for traders to take advantage of price change and make some profit. The currency market is different from equity and commodity trading and has its own pros and cons. Today we will talk about the advantages and disadvantages of forex trading. Read More www.moneysukh.com STOCK EQUITY IPO MUTUAL FUND FUTURE & OPTION ETF SGB EVENT TRACKER Market Hunt Derivative reports Commodity reports Margin updates Monthly Magazine Blogs
What is Forex Trading? Forex Trading is the course of action to buy and sell the currencies of different countries in the foreign exchange market. Unlike equity and commodity market, forex trading doesn't have any centralized exchange. In forex trading, all the transactions take place electronically over the counter (OTC), while equity and commodity trading take place on exchanges. Read More STOCK EQUITY IPO MUTUAL FUND FUTURE & OPTION ETF SGB EVENT TRACKER Market Hunt Derivative reports Commodity reports Margin updates Monthly Magazine Blogs
Pros and Cons of Forex Trading In the financial market, trading is not always profitable, there are various risk factors involved. And forex trading has its benefits and risks. Hence, if you are thinking to start trading in the forex market, you should be aware of the advantages and disadvantages of forex trading that will help you avoid losses and maximize your profits. Read More STOCK EQUITY IPO MUTUAL FUND FUTURE & OPTION ETF SGB EVENT TRACKER Market Hunt Derivative reports Commodity reports Margin updates Monthly Magazine Blogs
Benefits of Forex Trading Round-the-Clock Trading -: One of the most interesting parts of forex trading is, you can trade anytime, from anywhere as it is open 24 hours. Though there are a lot of different trading hours, trading not stops globally and is open to all types of traders. However, in India, the market timing for OTC currency trades including forex derivatives is 9:00 am IST to 3:30 pm IST. Highly Liquid Market -: Owing to access to a huge number of traders globally, the forex market is one of the most highly liquid financial markets in the world. Due to the regular and large volume of trades, the liquidity in the market is also very high making forex trading a highly liquid market. Read More www.moneysukh.com STOCK EQUITY IPO MUTUAL FUND FUTURE & OPTION ETF SGB EVENT TRACKER Market Hunt Derivative reports Commodity reports Margin updates Monthly Magazine Blogs
High Leverages for Trading -: Compare to other financial markets, forex trading gives the highest amount of leverage to traders. In the currency market, you have the opportunity to get high margins to trade many times you can say up to 20 or 30 times to trade in the market. Low Transaction Fees -: Trading in the forex market comes with another advantage of low-cost transaction fees. Yes compared to equity and commodity markets, the transaction cost of forex trading is much lower. The reason behind the low-cost transaction is, the forex market is mainly operated by the dealers who provide the two-way quote after securing their positions to minimize the risk. Read More www.moneysukh.com STOCK EQUITY IPO MUTUAL FUND FUTURE & OPTION ETF SGB EVENT TRACKER Market Hunt Derivative reports Commodity reports Margin updates Monthly Magazine Blogs
Wide Trading Options -: In the forex trading market, you will get multiple options to trade into different combinations of currencies. Here you can make up to hundreds of currency pairs with the option to trade in spot and futures markets for a high-risk and high returns strategy. High Returns in Short Period -: The main motive for investing in the financial markets is getting returns, and in forex trading, you can get the maximum returns in the shortest period. Sometimes paring the currencies gives quick returns as soon as you make the position. Read More STOCK EQUITY IPO MUTUAL FUND FUTURE & OPTION ETF SGB EVENT TRACKER Market Hunt Derivative reports Commodity reports Margin updates Monthly Magazine Blogs
Disadvantages of Forex Trading High Volatility -: Owing to the participation of international traders, global factors including political, economic and financial make the currency price keeps fluctuating. This unstable price of currencies makes the forex market highly volatile for trading. And when Volatility Index (VIX) is high there is a chance of losses too equally making the trade highly risky. Unpredictable Pricing -: The price of the currency of the country is affected and influenced by fundamental factors like economic factors, political scenarios, other international factors and demand and supply of the currency. Apart from this the technical indicators also encourage and decoupage traders to trade or exit from their positions. Hence the price of the currency in forex trading is very unpredictable and it can cost you if your predictions do not go in the right direction. Read More www.moneysukh.com STOCK EQUITY IPO MUTUAL FUND FUTURE & OPTION
Operational Risk -: As we already told you forex market works round-the-clock for 24 hours, and it is not possible for every country's traders to keep an eye on their position. Here, traders square off their position as per the working hours in their country otherwise they use the algorithms to keep watching their investments and take action on their behalf. High Leverage-High Risk -: In financial market trading high leverage can give you a high margin to get credit or borrow funds from your broker multiple times than your fund available. High leverage can give you high returns but at the same time, if the price movement of your currencies is not favorable, you can incur huge losses. Usually, traders who recently started trading in the financial market don't have any idea of the risk of taking the advantage of high leverage offered by their broker. Read More www.moneysukh.com STOCK EQUITY IPO MUTUAL FUND FUTURE & OPTION ETF SGB EVENT TRACKER Market Hunt Derivative reports Commodity reports Margin updates Monthly Magazine Blogs
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