The main advantage of the forex market is
that there is no bear market. Currencies
are traded in pairs, for example Dollar/Yen or Dollar/Swiss
Franc. Every position involves the selling of one currency
and the buying of another. If the trader believes the Swiss
Franc will appreciate against the Dollar, he or she can sell
Dollars and buy Swiss Francs. Or if the trader believes the
opposite will occur, then he or she can buy Dollars for Swiss
Francs. The potential for trading exists in all market conditions. One of the sides of the pair is constantly gaining, and providing that the investor picks the right side at the right time, trading opportunities can occur.
Other benefits include:
- The four major currency pairs always have buyers and sellers.
- High liquidity and 24 hour trading allow market participants
to exit or take a new position
regardless of the hour.
- Leverage. *
- Open 24 hours
- Liquidity. Easy to buy and easy to sell.
- Two-Way Market. Trade the market up or down.
- Information is readily available
- Trading in the four major currency pairs plus the main Euro
- 3 to 5 point spreads on major currency pairs. (These spreads may vary depending on market conditions).
- 24-hour trading via telephone or internet.
- Free real time quotes, charts and news 24-hours a day five
days a week.
- Rapid execution of orders over the phone or internet with no extra charges for phone trading.
- No charges for stop or limit orders.
- No commissions. **
- Margin requirements 0.5% - 1.0%.
- US$2,000.00 minimum account balance.
- Trading tips and strategies to guide your decision-making.
* Without proper risk management, a high degree of leverage can lead to large losses as well as gains.
** The FCM and IB are compensated for their services through the spread between the bid/ask prices
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