The Many Benefits of over the Stocks Trading

Online trading through Internet-based companies and brokers has dramatically lowered the costs of investing in forex trading, and empowered the individual retail investor to invest in the market - and this online access to the market has made it accessible to the small & medium sized investors and retail traders.

This is why forex trading is gaining a lot of popularity, especially considering the Leverage given to retail investors and retail traders to start Forex Trading. Simply put leverage means For Every 1 dollar you put in your account - your broker will give you up to $100 dollars(for leverage ratio 100:1), so if you start trading with $1,000 dollars you will get a total of $100,000. Your profit will be calculated from this $100,000 dollars and you can double or triple your money in a matter of days - or also lose it in days.

This leverage is what makes Forex Trading profitable and attractive to many beginners. Leverage makes forex trading more accessible to retail investors and retail traders who don't have thousands of dollars to start trading with, but when they get forex leverage their capital is boosted to the tune of hundreds of dollars for everyone dollar that is deposited.

If you have 1,000 dollars in your account and get the leverage of 100:1 you will have a total of $100,000 dollars to start trading with. You can then buy a forex contract which is the method used to buy or sell in forex trading.

If you buy a forex contract you will make a profit of $10 for everyone pip movement in forex trading price, which is 1/100 of a cent, so if the currency pair you have bought appreciates by 1 cent (100 forex pips) you will make a profit of $1,000 i.e. $10 *100 pips. Likewise, if the currency pair you have bought moves in the opposite direction of the trade that you have just opened by 1 cent (100 forex pips) you will make a loss of $1,000 i.e. $10 *100 pips. trading leverage can increase profits as well as losses.

Another advantage of spot forex trading is that you can open a free Demo Account, the demo account is a practice account that you use to practice trading with - without putting in your money, it uses virtual money to simulate real forex trading. Just like the same way that there is a flight simulator for pilots we have a demo account for beginner traders traders. traders use the Practice account to practice trading and learn how to trade forex currencies using the trading software that is provided to them by their online broker.

Using the demo account traders can login to the platform - open charts - analyze forex trading price movements using indicators and use the trading platform new order option to open trades on the trading platform. Forex profits and losses will then be calculated by the trading platform based on the currency price movement on the charts that is provided by the broker. traders can also learn how to close the open trades using the software trading order window using the practice account.

Probably the most attractive arguments for the market is that it is accessible to just about anyone and everyone and the fact that you can find virtually thousands of online brokers that provide totally free of charge, no deposit, downloadable trading software which enables you as a beginner trader to access the trading price quotes live using a free practice account makes the market available to all.

A demo account provides you with an almost identical experience as the one that you will experience when you start using real money and start trading on the live account. The demo account uses the same trading software which is used by real traders trading using a real forex account, the only difference is that you are using virtual money like the monopoly game money, not real money.

The value of this type of practical experience is invaluable, mostly because it makes it possible for the new beginner traders to discover if or not they got what it takes to make it in the world's largest financial market - market. The new investor or the new trader can learn, evaluate and test out their strategies & forex trading methods for many days, weeks or months before they decide they are ready to get started in forex trading with real money.

However, before you start to invest in forex trading, you need to learn the different terms and the strategies used. On this Learn Website is where you can learn everything about forex trading and learn how to practice trade on a demo account within a month or two of trading learning and trading practice you will have enough knowledge to decide f you want to start trading online using real money on a live account. Browse to our learn trading basics lessons section and start learning how to make money in forex trading.

Benefits of over Stocks Trading

Deal directly from live trading price quotes• Instantaneous forex trade transaction execution and confirmation• Fast and efficient execution of trading deals• Lower transaction costs in forex trading• Real-time profit and loss analysis if trades• Full access to data and trading information

Deal directly from live trading price quotes

Online brokers are able to offer their clients realtime bid/ask quotes, which facilitates instantaneous forex trade transaction execution & no missed trade opportunities. Streaming trading prices also allow forex investors and traders to compare an online broker's dealing forex spreads to ensure they are receiving the best possible forex trading price on all their trade transactions.

In the stocks trading - stock brokers require their clients to request a price before dealing. This is disadvantageous for a number of reasons, primarily because it significantly lengthens the execution process from just a few seconds to possibly as long as a minute. In a fast paced forex trading environment, this could make a significant difference in an investor's profit potential.

Instantaneous execution and confirmation of orders

Timing is everything in the fast paced forex trading currency exchange environment. Online trade trade transactions are executed and confirmed within seconds, which ensures that traders don't miss any trading opportunities. Even the incremental extra time it takes to complete a trade transaction over the phone can mean a big difference in profit potential. Online trade trade transactions are executed and confirmed within seconds, which ensures no missed forex trade opportunities.

Lower transaction costs

Simply, executing trade trade transactions electronically reduces manual effort, therefore lowering the costs of doing business. Online brokers are then able to pass along the savings to their client base. Executing trades electronically reduces manual procedures, therefore lowering the overall costs of doing business. Online brokers are then able to pass along the benefit of low transaction costs to their clients.

Traders also have the ability to execute trade transactions of between $100,000 and $10,000,000 at the same prices as the Inter-bank market offers for deals that are over $100,000,000. This benefits those who wish to speculate on the direction of the forex currencies prices for profit.

Real-time profit and loss analysis in forex trading

The fast-paced nature of Forex trading compels traders to execute multiple trades each day. It's vital for each client to have real time information about their current forex trade position in order to make well-informed forex trading decisions. Investors and traders can access this data and reports about their current open trade positions thus helping them to make informed forex trading decisions.

Full access to market information

Access to timely and relevant forex trading information is critical. Professional Investors pay thousands of dollars each month for access to major information providers. However, the very nature of the internet affords users free access to reliable information from a variety of online sources, including streaming price quotes, international news, government-issued economic indicators and reports, as well as subjective information such as expert commentary and analysis, forums etc.

In trading, info is readily available from a wide variety of online sources, such as brokers and resources such as economic calendars.

Real-time price quotes, international news, economic reports and indicators and analysis reviews are all available on the internet.

24-hour Access to the market

The main advantage of trading over stocks trading is that it is open 24 hour where there are always buyers and sellers actively participating at any time of the day or night 5 days a week.

High liquidity in the market

market has an average turnover volume of over $7 trillion per day, and it is the most liquid financial market in the world. This means that a trader can enter or exit trades at any time in any time, and there is very minimal execution barriers and no daily transaction limit.

High leverage

A leverage ratio of up to 100:1 is typical in the market as compared to a leverage ratio of 2 ( or a 50% margin requirement) for equities and stocks. This also makes participating in the currency exchange market a double-edged sword as the high leverage makes the risk to the down side loss greater in the same way that it makes the profits potential on the up side more attractive.

Always a chance of trading profit making opportunity

trade transactions involve buying or selling one currency against another. Thus, there is always a chance to make profits, in a bullish trend or a bearish trend. Investors and traders can always find an opportunity for opening a trade and the chance to make money in both a bullish trend or bearish trend, by either buying a currency that is appreciating or selling the one that is depreciating.

Inter-bank execution

Net-work of the of a global inter-bank network of dealers, forex liquidity providers and commercial banks, which communicate with each another on behalf of their clients through electronic networks and telephones - which provides clients with interbank execution of market orders. There isn't an organized central exchange to serve as a central location to facilitate trend transactions executions the way that the New York Stock Exchange serves the equity markets.

Forex trading operates in a manner similar to the way that NASDAQ in the United States operates, and it is thus also referred to as an "over the counter" market or OTC market.

No one can corner the market

Forex is so enormous and with so many participants that no single entity, not even a central bank, can control the trading prices for an extended period. Even the interventions by major central banks are becoming increasingly short-lived, and thus central banks have become less and less inclined to intervene or to manipulate the prices.

Advantages of Trading Forex For New New Traders

Another advantage is that Forex gives the new investor or new trader looking to uncover their trade strategies and trade methods is the simplicity of entry into this market. The field of stocks is dominated by a few select online brokers who have jointly decided that $3,000 is the minimum amount that they are going to accept for them to open a stocks trading account and even at these levels, the level of services is even decreased.

In contrast there are many Online Brokers who have established Micro forex accounts which allows for small level of risk by placing trades on the market using what is known as micro lots. These micro forex accounts extend the access of the market to investors and retail traders seeking to invest with minimum capital. beginners can begin with funds as little as $100. Moreover, these deposits can be quickly and easily transferred via a credit card or debit card and other payment methods, while the vast majority of online stock broker deposits require a wire transfer deposit.

It's for this reason that the market is preferred to stock market because it is much more accessible to retail investors and retail traders as compared to stocks market and it has certain unique factors that offer potential opportunities for more profit than in any other financial market. Beginner Traders can take advantage of the trading price fluctuations to make profits from these forex currency price movements.