What is Forex?
It is a platform that offers the world’s highest trading volume and liquidity market, being open 5/24, Leverage, ease of trading wherever there is internet, benefiting from intraday activity, controlling profit and loss.
What are the Advantages of Forex?
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- Product variety,
- Bidirectional Operation Opportunity
- Leverage System
- Free Market
- Investor Friendly Platform
- Low Cost, High Liquidity
1. Product Variety
Although the literal meaning of Forex is currency exchange, in this market, in addition to currencies, many commodities and indices such as wheat, corn, copper, oil, gold, soybean, coffee can be traded. Since the dynamism in the markets varies for each product, having alternatives gives you an advantage.
2.Bidirectional Operation Opportunity
The basic logic in the Forex market is not to physically own a product and then sell it, but to follow the appreciation or depreciation of the price of any product. Therefore, if you think that the price of any product in the market will increase, you can buy, if you think it will decrease, you can sell, and you do not need to buy beforehand.
3. Leverage System
Leverage allows you to make a volume higher than the lot amount in return for the amount you want to trade. Leverage rate varies according to the products and collateral.
Let’s say you will trade $1000, when you use 1:200 leverage, your earnings will increase as you will have a trading volume of $200,000. (Otherwise, it should not be forgotten that the loss is too much, and considering that you have invested a maximum of 1000 dollars, the amount you will lose; while you will have a loss of 1000 dollars, your gain is always open).
4. Free Market
The Forex market is a decentralized, over-the-counter market and is open 24 hours a day, 5 days a week due to the world time difference. You can trade at any time you want until Friday night in the market that opens on Sunday night. Thus, you will not have the stress of following the opening and closing times of the day or being late for the transaction.
All you need to trade in the Forex market is the internet. You can trade from your computer, tablet or compatible mobile phone wherever there is internet. In addition, you can place a transaction order over the phone from the brokerage house you work for.
6. Investor Friendly Platform
Although there are different platforms used by some institutions in the Forex market, it is the generally accepted Meta Trader platform. Since you can determine your profit or loss level when opening a trade on this platform, you do not lose all of your collateral and you guarantee your profit.
Another advantage of the Meta Trader platform is the ability to place pending orders. In other words, you can place a buy or sell order for the product you want to trade at a price you set before, and your order becomes active when the price reaches the level you set. In this way, you do not have to constantly follow the market.
7. Low Cost, High Liquidity
In the Forex market, the investor only pays the spread (spread) for the product he wants to trade. Apart from this, it does not make additional payments such as commissions or transaction fees.
With the advantages mentioned above, forex is the market with the most liquidity in the world. With the high transaction volume and the increasing number of participants, the liquidity of the market is also increasing.