10 Top Advantages of Forex Market

When financial markets are compared, forex stands out in many respects. In this text; We have shared the best of the forex world with you in 10 items.

Top of the Forex Market with 10 Items

World’s Largest Market

The Forex market is global and managed through trading centers located around the world. Due to the geographical location of these trading centers, the forex market remains active 24 hours a day, 5 days a week, excluding weekends. At the same time, a large transaction volume emerges as all the investors of the world are gathered on a single platform. Thanks to its daily trading volume of close to 10 trillion dollars, forex is defined as the largest market in the world.

Due to the high daily trading volume and the largest market in the world, investors can make good profits in the forex market in the short term. There is a constant fluctuation in prices and investors can make instant buy and sell transactions by taking advantage of them. In this way, a good profit is obtained from daily buy and sell transactions. By making use of other trading features such as leverage, the daily profit rate can be maximized.

The World’s Most Liquid Market

Due to the global nature of the Forex market, there is also high liquidity. If a forex investor can make good use of this liquidity in the market, he or she can make a satisfactory profit in the short term. The most important point here is the knowledge and experience of the investor. An experienced trader benefits from the volatility of the forex market, making a high profit in the short term. If you want to improve yourself in this regard, you can use demo accounts that trade with virtual money. Thanks to demo accounts, you can learn how to evaluate instant price movements without risking your money.

The word liquidity means that an investment instrument can be easily converted into cash. In other words, it means that you can easily sell an investment vehicle and get the profit you earn. Excess liquidity in an economy indicates that there is excess cash in the economy. Excess cash shows that there are more cash transactions in the country. Due to the high liquidity of the Forex market, it is also known as foreign exchange trading.

Shortest Term Investment Transactions

One of the advantages of the global Forex market is short-term transactions. Because of its global nature, the trading volume of the forex market is quite high. The higher the transaction volume, the higher the liquidity. Thanks to the environment created by all these, short-term investment transactions can be made easily in forex.

Under normal conditions, it is not possible to earn high profits from short-term transactions. At the same time, short-term transactions in the stock market are not preferred because they are risky. In the Forex market, you can earn money by making safe buy and sell transactions in the short term due to the high transaction volume and market structure. It is even possible to evaluate instant price fluctuations.

The Largest Diversity of Investment Instruments

Forex, when compared to other markets, comes up with more investment tool options. Investment instruments, which can be divided into main groups such as currencies, commodities, stocks, stock market indices, are divided into many subgroups. Investors, on the other hand, can perform their transactions with the investment vehicle they want. Currencies can be divided into three as major, minor and exotic. You can learn how to invest in exotic parities in Forex here. The major currencies are those with the highest liquidity. The parity formed by the two major currencies is called the major parity. Minor currencies, on the other hand, are preferred by local investors, although they are less liquid. A minor currency is traded alongside a major currency. In this way, minor parity is formed. The most-traded parity is EUR/USD. EUR/USD investment in Forex corresponds to 28% of total transactions.

Commodities, on the other hand, are divided into many subgroups. It represents a wide group from precious metals to industrial metals, from agricultural products to chemicals. Commodities with the highest transaction volume are gold, silver, copper, petroleum, wheat, corn, cocoa, cotton, aluminum, and steel. Investment transactions in the Forex market are made in intangible ways and only by buying and selling the changes in prices. For this reason, it is also possible to simply invest in commodities.

In terms of stocks and stock market indices, we can say that you are luckier than the stock market. Because the forex market is global, you invest in world-famous stocks and giant stock market indices. E.g; You can buy and sell Apple shares in forex by taking advantage of non-physical conditions and instant fluctuations. Likewise, you can trade forex with the S&P 500 index, which is followed by the whole world. These trades are called CFDs and are one of the best features of the forex market.

The Market With The Most Detailed Service

You can perform your transactions by taking advantage of many opportunities in the Forex market. In addition, you can have almost all of these opportunities for free. You can use the educational opportunities before you start trading and without being an official forex investor. Free forex training is provided by intermediary institutions and anyone can benefit from it. Thanks to the training, you will make a conscious start to the market.

Analysis support is another free service provided by forex brokerage firms. Daily, weekly, monthly and periodic analysis reports prepared by the analysts of your brokerage house are given to investors free of charge. In addition to the analysis service, you should also make your own market comments and take them together and trade at the levels you believe to be the most accurate. You should not do your transactions only on the reports you receive. You need to create a position by verifying the results.

One of the Forex market services is the 5/24 and even 24/7 live support by some brokerage houses. When you make an agreement with a brokerage house, a customer representative is determined for you. This customer representative is in constant communication with you and you can reach him whenever you want. Although it does not provide investment consultancy services to you, it answers your questions with market comments.

The Market with the Longest Trading Hours

In the Forex market, unlike the others, you can trade 5/24 excluding weekends. Such a privilege has arisen because the Forex market is global. Because it operates in a similar way to the interbank system through trade centers located all over the world. Due to the geographical location of these trading centers, forex remains open 24 hours a day, 5 days a week.

Forex trading starts with the opening of the Australia – Sydney market as of 23:59 on Sunday night. As of 23.59 on Friday night, forex transactions stop with the closing of the New York market. After opening with the Sydney market, respectively; Hong Kong, Singapore, Tokyo markets become active. Then European and American markets are opened and the cycle continues in this way. Investors, on the other hand, can perform their transactions whenever and wherever they want, thanks to this advantage and online transactions. The most-traded hour is when the US markets and European markets intersect. The country with the most transactions in the UK.

Highest Profitable Market

Thanks to the trading features of the Forex market, there is a higher profit potential than others. Investors with good knowledge and experience can benefit from this profit at the maximum level. Thanks to features such as bidirectional transactions and leverage systems, investors can perform their transactions in both easy and profitable ways.

The leveraged trading system is the most striking feature of the forex market. Leverage ratios, which are limited to 1 to 100 in our country, increase up to 1 to 400 ratios abroad. These ratios mean an increase in the profit you will get. For example, when you make a transaction with $20, you will be deemed to have traded with $2000 thanks to the leverage ratio of 1 to 100. As a result of the transaction, you will make a profit of 500 dollars, while you will make a profit of 5 dollars. Looking at the result, you will make a profit of 500 dollars from a transaction made with 20 dollars. The leverage system, in its simplest form, can be explained in this way. On the other hand, investors who will trade with leverage should have a good experience. Because it is a fact that high profit is high risk.

The Most Technological Market

Forex transactions are carried out over the internet. You can make your investment with simple commands as in online banking transactions. Transactions made through the trader programs take place within seconds. In the forex market, which has a high trading volume, buy and sell orders meet each other within seconds. Therefore, transactions are carried out in a short time. The same is true in the stock market, but it takes a longer time for orders to meet depending on the trading volume.

Placing orders, doing analysis, and portfolio management are easily done through trading platforms in the forex market. By working with intermediary institutions that have a solid infrastructure, you can benefit from all the technological opportunities offered by the forex market. When you place an order from any province of Turkey, you trade at the same prices and market conditions as the person ordering from the other side of the world. Thus, in the short term, you can easily evaluate lucrative opportunities.

A Market Offering Investment Opportunities for the World’s Best

You can invest in the world’s giant companies in the Forex market. It offers the opportunity to own the stocks of the most powerful companies in the world. In order to do this, you do not have to deal with many details. You perform your transactions simply by using the buy and sell buttons. You do not need to be registered in any foreign exchange. You can buy and sell in non-physical ways with all stocks and stock market indices offered by your brokerage house.

We know as the world giant; Stocks of companies such as Amazon, Google, Facebook, Apple, Microsoft, Royal Dutch Shell, Ferrari are invested in forex. By examining the price charts of these stocks, you can perform your transactions without paying any additional fees. At the same time, it does not matter how much collateral you trade.

The Most Inexpensive Market

You do not need to make any payments for the transactions you make in the Forex market. You do not pay a fee for the services you receive from intermediary institutions, and there is no brokerage fee. No payment is made in matters such as storage and storage.

Forex transactions are carried out away from the costs such as account maintenance fees and commissions, which are in question in the stock market and banks. There are two points in the market. There may be a certain expense due to the overnight carrying cost called swap and the spread rates between the buy and sell spreads. But thanks to the swap-free account option and transactions that are opened and closed on the same day, you can avoid swap costs. After making a profit as much as the spread rate, you can make your transaction without paying any fee.

SEE ALSO: What is Triangle Formation?

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