Benefits of Forex Trading

Forex trading has evolved over the years. Today, it delivers new earning opportunities for people with little or no prior experience. Mobile and web technologies make it easy to start trading right at once. Users can buy and sell different assets on the fly as well as explore a variety of instruments across different markets.

In this article, we will highlight some of the core reasons why it is a good idea to start trading. So, stay tuned!

Why Trade Forex?

If you plan to start trading, you probably know the key benefits of the FX market. Oppositely, if some users still have doubts about whether to dive into this activity, check out some of the following:

• Worldwide Accessibility – Forex market is a global financial environment where anyone can enter and start trading. Location, background, or skills do not matter.
• Good for Amateurs – more and more beginners consider Forex trading as their main source of income. Initially, financial markets were hard to understand for newbies along with technical analysis, Forex charts, etc. Today, they can use copy trading and other advanced solutions letting them buy and sell assets with zero experience though Forex education is still vital. A solid financial background is the key to success.
• Round-the-Clock Trading – unlike commodity trading and other markets, Forex lets you purchase and sell currencies 24/7. What’s more, traders can act even during weekends, when major markets are closed. Pre- and post-market sessions open new horizons.
• High Liquidity – the FX market comes with the highest liquidity. It means more chances to trade with high profit.
• A Range of Assets – on the one hand, Forex is all about trading currencies. However, investors can choose from not only major pairs like USD/EUR or GBP/USD but also minor and exotic currency pairs. It all depends on their preferences and selected strategies.

Besides, the market is well-regulated, which prevents participants from the risk of unexpected failure. Modern traders have the latest technologies to execute orders instantly online. All you need is to select a trusted broker.

Ability to Go Long or Go Short

Getting started with Forex is quite easy. You will need to work out a strategy depending on whether you want to go long or short.

Entering a short position means selling an asset. Let’s say, you hold an asset that grows in price against another currency. The ideal solution here is to wait until the price reaches its high and sell it to make maximum profit.

Oppositely, going long is associated with purchasing an asset. For instance, you predict an underlying currency price would make a rally. The idea is to buy it at the lowest price and wait until it is in the uptrend to sell (go short) with a profit.

Forex Market Hours

As stated earlier, the FX market ensures round-the-clock trading opportunities. Investors can buy and sell currencies 24/7 5 days a week. However, not all markets are open all the time. To buy and sell currencies non-stop, you need to switch between major global currency exchanges. Their schedule is as follows:

Does Forex Trade on Weekends?

No, it does not. All major global exchanges are closed on weekends and holidays. You need to follow the official schedule. However, traders can benefit from so-called pre- and post-market sessions.

Pre-Market Trading

It usually takes place before the main trading session is open. It lets investors get prepared for the new trading day, look up at current trends and predict the potential price move. The main benefit of pre-market trading is that one can quickly react to breaking news.

Post-Market Trading

It happens when the main trading sessions are closed. Generally, post-market trading is all about the analytics of past events. Besides, investors can benefit from extended hours on practically all major currency pairs.

Forex Volatility

The Forex market is extremely volatile. It makes it a good choice to start trading. The asset price moves all the time affected by a number of crucial factors one needs to consider:

1. Country’s economic health. For example, you trade GBP. So, you need to be aware of how the UK economy is doing to predict the potential price trend).
2. Global Economy. The worldwide economic situation can also let you read the situation and foresee the next price move.
3. News and Events. Breaking news, political events, natural disasters, and other factors can move the market drastically. Make sure you follow the latest releases, official reports, indexes, and so on.
4. Market Conditions. The ability to identify overbought (bullish) or oversold (bearish) market conditions can help you read the situation. This is where you will need technical indicators and Forex trading charts.

Actually, tons of different factors can change the way the FX market moves. Keep in mind that high volatility means not only high profits but also higher risks.

Leverage can make your money go further

Traders can buy and sell currencies in different ways. Trading with leverage is a chance to go long or short with a higher asset volume that you can buy. CFDs are the tool that helps your fund go further.

The concept is quite simple. Say, you want to buy a specific amount of currency but do not have enough money. With CFDs, it is possible to buy the needed volume while paying only a small portion of the total price.

Depending on the trade’s success, the profit/loss will be reflected as the full volume value once the position has been closed. On the one hand, it means more profit opportunities. On the other hand, it is associated with specific risks. So, a proper risk and money-management strategy is vital.

Hedge with Forex

The idea of hedging supposes the implementation of several strategic positions. Experts believe it can prevent the risk of unexpected market moves. At least, hedging will let you mitigate potential losses if something goes wrong. In simpler words, you can take control of the losses.

To hedge Forex, one can:

• Trade positively correlated currencies (for instance, EUR/USD) and mirror positions in both directions.
• Use hedging in other markets like commodities when trading USD/CAD that has inverse relations with crude oil.

Access Tools to Help You Trade

MTrading is a trusted broker to let you start trading seamlessly despite the experience. We deliver all the latest instruments and technologies letting you execute orders on the fly.

Beginners will appreciate risk-free copy trading. All they need to do is to select an experienced professional, follow his trades, and share profits. Additionally, users will get full access to our knowledgebase with tons of useful materials and how-to guides. Clients can take part in webinars and stay tuned to the latest market news.

Oh, and don’t forget to grab your deposit bonus and get up to 200% of free cash to the balance.

This material does not contain and should not be construed as containing investment advice, investment recommendations, an offer of or solicitation for any transactions in financial instruments. Before making any investment decisions, you should seek advice from independent financial advisors to ensure you understand the risks.