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Foreign exchange market and stock market comparison (a)

foreign exchange Forex rebate king forexrebateindonesia one of the most liquid markets in the world, allowing Forexrebateking to trade 24 hours a day, low transaction costs, providing high financial leverage, up market down market can be profitable, there is a minimum error rate cashbackinforex limited execution error, no cashback forex restrictions or up short regulations traders can apply the methods of analysis of the stock market in the foreign exchange market for the fundamentals For traders, each countrys currency is like a different stock For technical traders, the Forex market is perfect for applying technical analysis, which has become the most common analytical tool used by professional traders Therefore, by understanding each feature of the Forex market specifically, one can truly understand the reason for the markets popularity 24-hour trading market This is one of the main reasons for the popularity of the Forex market Active traders will find that this is an ideal market for trading. It operates 24 hours a day, and traders can enter the market at any time of the day and react instantly to global developments. If a major national or international announcement is made or a new development occurs during the period when the stock market is closed (4:00 p.m. to 9:30 a.m. New York time), most day traders will have to wait until the exchange opens at 9:30 a.m. to place a trade unless you have access to electronic communications networks (ECNs) like Instinet to participate in pre-opening trades. After the market opens, the market is nine times out of ten far away from you Before the average trader enters the market, all the professional traders are already reacting to events on the price In addition, many people who want to trade have a full-time job and the Forex market can easily allow them to trade in their spare time Because financial centers around the world are actively involved in Forex trading, at any time of the day, there are Regardless of the time of day, large online forex brokers offer the same liquidity and spreads at 5:00 p.m. New York time on Sunday, the forex market in Sydney, Australia opens at 7:00 p.m. Tokyo, Japan opens at 7:00 p.m. followed by Singapore and Hong Kong at 9:00 p.m., then the European market, Frankfurt at 2:00 a.m. and London at 3:00 a.m. By 4:00 a.m., the European market is active: While the European market continues, the U.S. market opens at 8:00 a.m. New York time on Monday until 5:00 p.m., when the market opens again in Sydney. The lower trading fees make the foreign exchange market particularly attractive. Trading commissions amount to $20 for a $100,000 position and an average commission of up to $120 for a buy and sell The Forex market is an over-the-counter market with no exchange or clearing house fees, thus reducing the cost of trading Through the electronic trading market, clients can trade directly with market makers, eliminating the costs of placing orders and intermediaries, further reducing transaction costs and increasing efficiency Because the Forex market has 24-hour liquidity, so whether trading during the day or night, traders can get competitive and small spreads Stock traders usually have to accept larger trading spreads due to the risk of liquidity in the market, especially when trading after the market closes For short term traders, the lower trading costs make the Forex market the best market for them to trade on Typical active stock trader A day can trade 30 times, each transaction to pay $ 20 commission, a day of trading costs up to $ 600 which is a lot of money, greatly reducing profits or increasing losses stock market trading costs so high, is because the process of trading involves brokers, exchanges and professional securities dealers they charge from the transaction in the form of commissions and clearing fees while the foreign exchange market is a no Exchange or clearing house decentralized market, market makers are responsible for the whole process, so there is no financial leverage for the above mentioned costs although many people recognize that. High leverage comes with high risk, but traders are human and few can easily turn down the opportunity to make money with other peoples money The Forex market caters to the needs of these traders, offering the highest financial leverage not available in other markets Most online Forex brokers offer 100x leverage for regular accounts and up to 200x for mini accounts Compare this to the stock market, which offers 2x leverage to the average investor and 10x leverage to professional traders. When you compare the leverage that the stock market offers to the average investor at 2x and the professional trader at 10x, you can see why many traders turn to the forex market Margin in the forex market is different from a deposit on a stock purchase, it is a performance guarantee, or a deposit in good faith, to ensure the ability to cover losses on a trade This is very useful for short term traders who need to increase their capital for faster returns In fact, financial leverage can be used as flexibly as needed The more risk averse investor uses only 10x or However, financial leverage is indeed a double-edged sword and using high financial leverage without proper money management can lead to even greater losses. So there is no structural preference in the market If you are buying one currency, then you are also selling another so there is the same opportunity for profit in both up and down markets unlike the stock market where most traders tend to buy rather than sell short so, generally speaking, stock investors suffer in bear markets There are no trading restrictions or rules for selling up and selling down The forex market is the worlds Unlike the stock market, the Forex market has no trading restrictions and no interruptions to trading which precludes losing money due to trading rules In the Forex market, traders can place orders anytime, 24 hours a day One of the biggest headaches for day traders in stocks is that they are not allowed to be in a downtrend unless they meet the rules for short selling on the upside It is very frustrating that traders can only watch a stock fall until an upward price occurs and cannot enter a short sale, which is not the case in the Forex market.
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