The foreign exchange market is very attractive for the retailer because it is a very liquid market. A liquid market means that there is a large number of buyers and sellers leading to the rapid execution of trading, both buying and selling, at any time during market hours.
2. continuous operation
The forex market is open 24 hours a day, 5 days a week, which means we can open and close trades at any time, unlike other markets. Conveniences and stocks. The largest volume of transactions is generally made while the various world markets are harmonic pattern indicator open all day, from Sydney, then from Tokyo, then from London to New York.
Due to the strong liquidity in the foreign exchange market, most brokers offer higher leverage than other markets. We will talk about it later. The basic concept is that an operator only needs a small percentage of the total price of the item. For example, if we have a leverage of 200: 1 and invest $ 500, we could take a position of $ 100,000.
As a result, small movements in the price of a currency have greater weight, which can result in greater profits for smaller investments. However, leverage works in both directions and can increase losses.
Due to the high level of leverage, it is possible to open accounts with FX brokers of just $ 100. This is a much lower entry level than other types of investments.
5. Low transaction costs
A forex broker primarily generates his income from the difference between the buying and selling prices. This is known as a discrepancy and because candlestick pattern indicator of the high volume of transactions, it is a relatively low royalty compared to prices that are, for example, calculated from a traditional broker.