Forex trading has vastly evolved since the past fifteen years. Any person can indulge in Forex trading irrespective of his education or profession. But not everyone can become a successful trader. One should also learn about the markets and then make informed choices as to whether the field is suitable for him or not. Forex Trading has become very much accessible to the common man in the past few decades. A person should know about the risks involved in Forex trading apart from advantages. Some people are of the opinion that Forex trading is similar to stock market trading. But Forex trading has a huge set of advantages. The main advantages are
Accessibility – To do Forex Practice, one need not have a huge capital. For small traders this one of the biggest benefits of Forex practice or trading unlike Stock market where one should have certain fixed capital before investing.
Liquidity – Money keeps changing hands continuously. Forex markets are open round the clock , five days a week. As a result of this, the market is highly liquid. One does not have to adjust his schedule while doing Forex practice as he can indulge in trading during any time of the day or night.
Technology – Forex has the newest trading platform compared others like stocks, options or futures. Many third party suppliers are also providing useful trading extensions to deal with Forex trading. Very good software helps you to trade effortlessly and there exists no room for mistakes whatsoever.
Short Trade – Forex practice allows individuals to sell currencies even without acquiring them. In other types of trading one has to buy at a lower price and sell at a higher price in order to make profits. But only in Forex, a person can sell high and buy low. You can sell the currencies or assets with just a single tick if you feel that it is spiralling downward.