Who better to hear from about what is forex and what its benefits are but actual traders themselves who have experienced first-hand what the forex market has to offer. Successful traders all over the world can speak about the benefits as well as the risks in the actual practice of trading currency pairs. The foreign exchange market is the world’s biggest financial market operating nearly 365 days a year – it is often referred to as the market that never sleeps. Traders who know and understand what is forex have learned to trade the market wisely and successfully wade through the risks involved to get out without so much as a few dollars off their accounts.
According to successful forex traders and investors themselves, what is forex is a market that provides a platform for big and small investors alike to gain profits from fluctuations in currency prices all over the world. This can conveniently be done with the trading environment presented by the forex market. Take a look at some of the benefits that traders are able to speak up about when asked what is forex:
- Liquidity – this biggest global financial market is also the most liquid market around. Forex trades are essentially over-the-counter trades with money changing hands in a matter of minutes. This kind of liquidity differentiates the forex market from other financial markets around the world. To the trader, such liquidity presents the benefit of price stability and ease of trade order execution. Despite the risks involved, this level of liquidity and the volume of trades make it difficult to manipulate the market.
- Control – although market forces cannot be controlled, traders have control over what currency pairs to purchase and what positions to open or close. Even with automated trading systems, it is still the trader who controls the way trades are made by entering trade orders into the system for implementation when the conditions in the trading order are met.
- Cost – the allure of the forex market to traders is not only in the promise of greater gains but also in the affordability of getting into the market. Different trading systems would have their own minimum account sizes imposed to traders who want to open and maintain forex trading accounts. How big or how small these accounts are depends on how much disposable funds a trader has. Leverage trading options also make it possible for traders and investors to open their trading positions with just a fraction of his account position.
- Accessibility – most forex trading facilities are already connected online. Traders and investors can consult their trading systems and place trading orders online anywhere they are in the world. Valuable information about currencies and currency pairs are likewise accessible over the internet for traders and brokers. Those who do not yet know what currencies to invest in and how to make wise trading decisions can also turn to the various information and investment tips that are accessible online. No matter where in the world the trader or investor is, he can gain access to all the information he needs for as long as he has an internet connection and a trading software that is hooked up to the trading platforms.