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Saturday, 27 October 2012

Why You Should Trade FOREX Over Other Investments

The conventional trading was only being focus on the stocks or shares that we all well understood. Actually the Forex (foreign currency exchange) trading has more advantages compared to the old fashioned financial markets.

Forex was the backbone and only traded by the banking (who trade billions of dollars daily), governments and companies. But now Forex trading is possible to ordinary people like you and me by just open an account with the best online forex brokers around. The advantage of using online trading platform enabled electronically.  Trading is far easier and less risky than either the futures or the stock markets. Money can be made both on a rising and falling market, unlike the stock market, which relies on shares increasing in price to create profit.

You can learn Forex trading by signing up the free Forex Demo Account before going live. Many part time traders still can earn from Forex market which open 24 hours a day and keeping their day job. With the daily trading volume of 3 trillions worldwide, you can easy make some dollars out of it.
Forex market is traded globally and, unlike the stock market, which has fixed hours, it is a market that never sleeps. Somewhere in the world, at any time of day or night, Forex is open for business, six days a week. The market starts each day in Sydney and moves around the globe as other Forex financial centers open: first to Tokyo, then London and New York.

Currencies are traded in pair, for an example the Euro and the US dollar (EUR/USD). The first currency – in this case the Euro – is known as the base currency; the second currency (here, the US dollar), is the counter-currency. All trades result in the simultaneous buying of one currency and the selling of the other. Thus, in this example, if you place an order to buy the EUR/USD, you are buying the Euro and selling the US dollar. If you were to sell the pair, you would be selling the Euro and buying the US dollar. There are many other currency pairs, such as USD/JPY, GBP/USD, EUR/GBP, USD/CHF and so on.

What makes trading FOREX an incredible way to make money online, is that price movements are highly predictable, creating trends that can be anticipated when it comes to decide when to buy and sell. Contrasting with stocks and shares, FOREX trading through brokers is commission free. It is also possible – and definitely recommended – to open a demo (practice) account with a broker first, where you can learn to trade and gain experience before you part with a cent of your own money.

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