Forex Malaysia Bank Negara
Instead of shares, futures and options, more and more people and investors are trading Forex. It is clear that Forex has given traders and investors unparalleled advantages over other investment vehicles. It is because of these benefits, I personally believe that a lot of not-so-well-to-do people can benefit from this market. In this article, we will look in detail the advantages of Forex trading has for wealth builders.
24 Hour Trading
The Forex market is open 24 hours daily. When Asia market is closed, the European market starts followed by the USA market and continued by Asia market again the next day. Thus, this allows Forex traders to take positions regardless of the time and locations. This is really helpful for those who can’t afford to quit their job and they can earn additional income through Forex part time.
No one can corner the Market
Foreign exchange market is so huge that no single entity has the capability to control the market price for a long period of time. That includes a central bank. There are simply too many participants, ranging from personal traders, commercial banks, central banks and hedge funds. Forex Malaysia Bank Negara
Extremely Liquidity
As the same reason as above, because Fx market is so vast, it is extremely liquid. Under normal circumstance, you can buy or sell the currencies pair at once. Shares on the other hand, you might not able to buy or sell the shares you want as there might not be a seller or buyer. There no such thing in Forex.
No Commission
There is no commission and no middlemen which incurred high cost and eat into your profits. Brokers earn their money through pip spread. At the reputable and larger brokers, the pip spread can go lower than 0.1 percent per trade. Forex Malaysia Bank Negara
Flexibility in Lot Size
In spot FX, you determine your own lot or contract size. This allows a lot of people to trade with as little as $300. Personally, I feel this can help a lot of people who wish to improve their life but does not have a lot of spare cash. Stock market and futures require a lot of capital to invest, thus making the wealthy or high salary society to earn more. Middle income group will have problems entering the stock market due to lack of cash. It isn’t wise for middle income earners to take a loan for this risk. Therefore, FX brokers that allow any lot size helps middle income earners to earn extra money. As long as these people has good and proper education on currency trading.
High Leverage
This is important to anyone who wish to trade as a small amount of capital with a high leverage allows you to control a larger contract size. This gives you the ability to make bigger profits and keeping risk at bay.
For example, with leverage of 100:1, if you open an account with $100. you are able to control $10,000 contract size. At the same time, by opening an account with $1000, you can control $100,000!
This, of course, can also cause you to lose the amount of money in your account easily if you do not exercise good money management. Forex Malaysia Bank Negara