Insights ยป Benefits of Forex Trading

Benefits of Forex Trading

24 Hour Market
The Forex market is the largest and most liquid of all the financial markets.  Since the Forex market is a worldwide market, trading is conducted 24 hours a day, 5 and a half days a week.  As long as there is a market opened somewhere in the world, trading in Forex is continuous.  Trading starts when the markets open in Australia on Sunday evening and ends after the markets close in New York on Friday.

High Liquidity
Liquidity is the ability of an asset to be converted into cash quickly and without any price discount.  In the highly liquid Forex market, large amounts of money can be moved into and out of the market with minimal price movement.  The Forex market's daily activity often exceeds $4-5 trillion USD a day.  This high liquidity aspect gives Goldenschild the advantage to enter and exit the Forex market easily while capturing lucrative trading profits from it.


Due to the high liquidity nature of the Forex market, the leverage amounts provided are one of the highest that investors can obtain.  Leverage is a loan that is provided to the investor by a broker or bank.  
Swissquote Bank offers up to 100:1 leverage on all investment accounts.  Proper use of leverage in conjunction with safe money management techniques provides a great advantage when trading the Forex market.

No Commissions & Low Spreads
Unlike stocks, there are no commissions associated with trading currencies.  Since the Forex market is an international OTC (over the counter) market, there is no physical, centralized exchange trading floor.  Trading is conducted 24 hours a day across the globe electronically.  Because of this, there are no expensive exchange fees associated with Forex trading.  The only cost of trading Forex is the spread between the bid (buy) price and the ask (sell) price of a currency pair. 

The spreads in the Forex market are in fact much tighter (less) than the spreads found in other markets such as stocks.  This makes OTC Forex trading one of the most cost-effective and efficient means of investing.  Goldenschild takes advantage of 
Swissquote Bank's highly competition tight spreads.


Profit Regardless of Market Direction
The Forex market is always providing investors the potential for profits, regardless of where the market is currently trending.  The ability to "short" a currency pair in the Forex market is not only allowed, but is very easy to achieve.  A short-sale is the selling of a currency pair before you buy it.  In order to make a profit on a short-sale trade, you must buy the currency back for less than you received when you sold it.  The difference represents your profit or loss on the trade.  With the ability to both long (buy) and short, profits can be made on trading both sides of the Forex market.