Forex trading offers a unique way of making money. Initially, it wasn’t this popular as the forex market was restricted to the big boys: major banks, hedge funds, major corporations, and other big financial institutions. You and I, the retail traders, weren’t allowed to partake in this incredible money-making opportunity. However, the restrictions were lifted with time. We can now avail ourselves the opportunity of enjoying the advantages of forex trading.
The forex market offers many advantages. Here're some of them.
24 hours-a-day market
The forex market is a 24 hours-a-day market, affording you flexible working hours. From 5 pm EST on Sunday to 5 pm EST on Friday, it’s a non-stop market. Each day, the market starts with the Asian session which opens by 5 pm EST, continues with the European session that opens by 2 am EST before the Asian session closes by 4 am EST. Before the European session closes by 11 am EST, New York session joins them by 8 am EST to close by 5 pm EST, rounding off a 24-hour period by which time the next Asian session has opened.
You choose when it’s conducive for you to trade the market. You can trade the forex market part-time or full-time, and with a flexible schedule. You only need to understand the peculiarities of whichever session you choose to trade and adopt a suitable strategy.
Enormous liquidity
Forex is by far the largest and most liquid market in the world. On average, more than $5 trillion are traded every day. By comparison, this volume is over 25 times more than the total trading volumes of all the stock markets in the world put together. So, like an ocean that never dries, there is always money to be made in the forex market.
Affordable initial investment
It is easy to start trading forex as the initial investment is affordable. With as low as $50, you can open an account with a legitimate broker and start your trading journey. This is unlike the thousands of dollars required to trade the options market and the stock market. This is not so huge an amount as you can spend it at one sitting in a bar. With patience and skills, you can gradually grow this little capital to a really tangible amount.
Instant execution of orders
You have access to technologically advanced platforms for easy and instant execution of orders. With the MT4, MT5, TradeStation, Currenex, ActTRader, cTrader, Advanced Trader, and a lot of other great platforms; you can place an order from your laptop or phone and it gets executed instantly. You don’t need to call your broker to place an order in the market. You have full control of your orders.
Some of these platforms can be downloaded as apps while others are web-based/online which you can access once you are connected to the internet. Whichever platform it is, your orders are executed at the speed of light provided your internet connection is fast enough.
Trade from anywhere in the world
You can access the market from anywhere in the world. Provided you have an internet connection, you can always access the forex market from wherever you are. You can trade from your office, train, bus, and in your pajamas at home. The fact that you can access the market from anywhere in the world is one of the most liberating benefits of trading the forex market. So even if you’re on vacation or business trip in any part of the world, you can access and trade the market.
Trade in either direction with ease
One of the most beautiful things about forex trading is that you can trade in either direction — buying or selling — with ease. Up or down, you make money trading in whichever direction the market is headed. If prices are going up, you buy; if they are coming down, you sell. At the end of the day, you’ve got some extra dollars in your account.
Adjustable leverage
Some brokers offer flexible and adjustable leverage. This allows you to use the broker's money to augment yours increasing the potential profit from each trade. However, this is a double-edged sword as the potential loss is also increased. Knowing the right leverage to use, when to use it and when not use it is one of the skills you have to learn.
Almost limitless income potentials
The liquidity of the forex market means that a lot of money can be made if you have the appropriate trading skills. The income potential is almost limitless. In fact, the only limitation is you. Your trading skills, mental strength, emotional control, and general psychology are the factors that can put a ceiling to your income potential in the forex market.
You are your own boss
If you trade your personal account, you will have no boss to worry about. You work when you can and when you want. No more unduly queries — the peace of mind you get from that feels great.
No unhappy customers
When you’re trading your own account, you won’t have any customer you’re concerned about. It is just you doing your thing with your phone or PC. You analyze the market and place your orders.
In conclusion, forex trading offers you a unique opportunity for making money from anywhere in the world at any time of your choosing. The only barrier to the limitless profit potential which forex trading can offer is you. Passion and consistent effort are the basic ingredients of success in forex trading. You can put in the effort and learn the skills required to trade the largest market in the world.
Emmanuel Ifeanyi Ekwomadu is a medical doctor and a writer who’s got a great passion for helping people enjoy healthy lives. He's a passionate forex trader and has got a knack for spotting value in the investment world. He writes to enrich people with his compelling and educating articles on various topics.
Contact him on anyiemadu@gmail.com