forex trading kay faide

In the domain of forex trading Leverage makes it possible for you to trade larger positions than would otherwise be possible based on your actual account balance.

Trading goes on all around the world during different countries' business hours. You can, therefore, trade major currencies at any time, 24 hours per day.

Since there are no set exchange hours, it means that there is also something happening at almost any time of the day or night.

Unlike many other financial markets, where it can be difficult to sell short, there are no limitations on shorting currencies.

If you think a currency will go up, buy it. If you think it will fall, sell it. This means there is no such thing as a "bear market" in forex - you can make (or lose) money any time.

Most forex accounts trade without a commission and there are no expensive exchange fees or data licenses.

The cost of trading is the spread between the buy price and the sell price, which is always displayed on your trading screen.

Because forex is a $4 trillion a day market, with most trading concentrated in only a few currencies, there are always a lot of people trading. This makes it typically very easy to get into and out of trades at any time, even in large sizes.

Because of the deep liquidity available in the forex market, you can trade forex with considerable leverage (up to 50:1). This can allow you to take advantage of even the smallest moves in the market.

Leverage is a double-edged sword, of course, as it can significantly increase your losses as well as your gains.

Since the forex market is worldwide, trading is continuous as long as there is a market open somewhere in the world. Trading starts when the markets open in Australia on Sunday evening, and ends after markets close in New York on Friday.

Liquidity is the ability of an asset to be converted into cash quickly and without any price discount. In forex this means we can move large amounts of money into and out of foreign currency with minimal price movement.

The forex market has no restrictions for directional trading. This means, if you think a currency pair is going to increase in value; you can buy it, or go long. Similarly, if you think it could decrease in value you can sell it, or go short.

The retail transaction cost (the bid/ask spread) is typically less than 0.1% under normal market conditions. At larger dealers, the spread could be as low as 0.07%.

Your trades are instantly executed under normal market conditions. Under these conditions, usually the price shown when you execute your market order is the price you get. You're able to execute directly off real-time streaming prices.