What Makes Forex Trading Attractive?
If you’re looking to enter into the exciting, interesting, and potentially lucrative world of trading, then a question you’ve probably asked yourself is, “what’s the difference between forex and trading in other markets? And which one should I choose?”
The first thing you need to know is that the Forex (foreign currency exchange) and stock trading markets are completely different entities. Each market has its own set of unique and appealing features.
The forex market is a decentralized global market in which all the currencies of the world are traded. It is the most liquid market globally, generating a daily average of $5.3 trillion in trades. The market is constantly influenced by news, global events, and politics, and thus a keen knowledge of such events is essential to success.
While Forex and other currency markets could be considered digital, especially in today’s climate of the internet and associated technologies like online banking, cryptocurrencies are truly digital. They cannot be likened to something like the Euro or Japanese Yen, for which there exists legal tender.
Forex trading accommodates leverage of 50:1. In other words, you can take a trading position to the value of $100 for a mere $2.
The volume of participants in the Forex market is larger than in any other market; thus, the market lends itself to a climate in which large volumes of currencies can be quickly traded. As a result, a single investor cannot drastically infringe upon or influence the Forex market as they might with the stock market.
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