Forex simply stands for foreign exchange. Its the exchange of one currency for another. Most of us have engaged in forex trading at least once or twice in our life. You might be wondering how, not in the form of trading but in other forms. For example, if you are visiting the USA, you need to have US dollars to spent there. For getting USD you will have to exchange it with your Indian Rupees. Its just one form of forex trading.
The forex market is the biggest financial market in the world, larger than the stock market. The digital site where one currency is exchanged for another, the forex market has a lot of unique attributes that may come as a surprise for new traders.
ADVANTAGES OF FOREX TRADING
- High Liquidity
One need not worry about getting his order not filling. Since the number of players higher, the volume is also high.
- Better risk management
It’s possible in forex, as you can start trading with much lower capital compared to futures with underlying stocks.
- Low barriers to entry
There are fewer complications to start forex trading.
- Low transaction cost
It depends on your broker, still its usually low compared to other derivatives.
- Open till 7 pm
It’s a better option for working professionals and students who are busy during day time.