If you are looking for a trading market that provides optimal trading conditions and high chances of profitability than forex market is your destination. There are various reasons why people prefer to trade in forex market. Some of them include mobility, liquidity, volatility, etc. You can trade at any point in time in the forex market. There is no time limitation to enter and exit a forex trade. A forex trade takes place between two currencies where you compare the value of one unit of the base currency with the quote currency.
Characteristics of the forex market
- No physical existence: Unlike the stock and commodities market, forex market has no actual existence. Every country has a stock exchange market that has a physical existence in form of a building. Such is not the case with forex market as there is no central location for the same. It is a decentralized market that operates through network between different countries.
- Largest trading market: Foreign exchange market is the largest market in the whole world. Per day transaction of forex is approximately $5 trillion. The volume of trade in forex exceeds the volume of stock and commodities market of the entire world put together by a huge margin.
- 24*7 trade: Forex trading market is the only market in the world that works 24*7. This means the forex market never pauses. It remains operational all the time. If you are planning to buy forex their always be a seller available to sell it. The forex market provides unparalleled flexibility.
Benefits of forex trading
- 24*7 trade: Foreign exchange market is the only market in the world that remains open 24 hours a day and 7 days a week. This provides the trader an opportunity to trade at any hour of the day, thus making it a highly liquid market. There will always be a seller available for you to buy forex so get yourself a Forex coach like Siby Varghese to train you well.
- Liquidity: It is another major benefit of trading in the forex market. There is large number of buyers and sellers available to trade at any point of time. The investor is not required to wait for carrying out a trade. The liquidity of the market helps to settle the transactions with poise.
- Volatility: As the forex market is the largest the volume of per day trades is also very high. The high volume of trade makes the market highly volatile. The volatility of the market thus increases the chances of earning a profit.