Advantages of Forex

Advantages of Forex

• 24-hour trading, 5 days a week with non-stop access to global FOREX dealers.

• An enormous liquid market making it easy to trade most currencies.

• Volatile markets offering profit opportunities.

• Standard instruments for controlling risk exposure.

• The ability to profit in rising or falling markets.

• Leveraged trading with low margin requirements.

• Many options for zero commission trading.

• Easily accessible and attractive for the investors of different levels.

• Protect your revenues from foreign currency transactions by hedging against exposure to adverse rate movements.

• Trading Forex has much lower transaction costs than other investment products, a very important point for active traders.

Chart Patterns - The Basics

Chart Patterns - The Basics

To be profitable in today's world technology and advancement, one must be proficient and reading and more importantly understanding chart patterns and basic technical indicators. Below are just a few basic points to help your understanding of technical analysis and currency chart reading.

Lower Transaction Costs

It is much more cost-efficient to trade Forex in terms of both commissions and transaction fees. Most Forex Brokers charge no commissions or fees whatsoever, while still offering traders access to all relevant market information and trading tools. In contrast, commissions for stock trades range from $7.95-$29.95 per trade with online discount brokers up to $100 or more per trade with full service brokers.

Another important point to consider is the width of the bid/ask spread. Regardless of deal size, Forex dealing spreads are normally 5 pips or less (a pip is .0005 US cents). In general, the width of the spread in a Forex transaction is less than 1/10 that of a stock transaction, which could include a .125 (1/8) wide spread.