Why Trade Forex

Forex has some advantages which make it very popular among investors:

Liquidity. Forex is the largest financial market in the world, with the equivalent of USD 4 trillion changing hands daily. Such liquidity, especially in the major currency pairs, helps ensure stable prices and lowest possible spreads (cost of trading).

Flexibility. Forex is a 24-hour market – you can trade whenever you want, from anywhere in the world.

Lower transaction costs. Traditionally there are no commissions or charges on Forex, except for the spread. If trading on ECN’s such as Currenex, commission charges do apply.

1:200 Leverage. Leverage is a powerful tool. You need to support a deposit of 500 US dollars to trade $100,000 (1 lot). Such high leverage combined with rapid rate fluctuations can make the Forex market profitable but at the same time risky.

Forex (FX) Margin Trading

Margin trading, enables investors to trade assets with a higher value than the capital held in their accounts. However, this does involve more risk and substantial losses are possible if the market moves against the trader’s position.

Here traders are advised to closely monitor the amount of margin they are using up. That’s because if this exceeds available collateral, positions must be closed, reduced, or covered with an additional deposit of funds.

Please feel free to contact us for more information on margin trading on our MT4 Forex trading accounts.