Why trade Forex

The FX markets are open 24 hours per day during the FX business week.

Individuals looking to profit from market movements can act any time of the day or night during the FX trading week to take advantage of changing market conditions. Many institution offers electronic access to its entire range of FX futures, virtually 24 hours per day during the FX trading week.

Advantages of the Forex Market

o Forex is open 24-hours a day

o Forex is the most liquid market in the world

o High leverage reduces the need for large amounts of capital

o Narrow bid/ask price spreads

o Instantaneous Execution under normal market conditions

Trading in the FX markets offers diversification.

In today’s equity market environment, diversification is a critical factor in individual portfolio management. FX can offer valuable market risk diversification for an investment portfolio that has equity market risk.

Exchange rates march to their own beat. On a historical basis, changes in exchange rates have had very low correlations with price movements in stock market values and interest rates. This lack of any systematic relationship can be exploited to lower portfolio risk and generate positive returns when other markets are in a depressed state.

When a trader initiates a position in a currency, it is either a bullish or bearish outlook versus other currencies. If the outlook is bullish, a trader can profit by purchasing that currency against other currencies. However, if an outlook is bearish, a trader can profit by selling that currency against other currencies.