• What is Forex
• Why Forex
• Forex Basics
• Technical Analysis
• Fundamental Analysis
• Forex FAQs

Why Forex

LIQUIDITY
Because the Forex Market is so large, it is also extremely liquid. This means that with a click of a mouse you can instantaneously buy and sell at will. You are never 'stuck' in a trade. You can even set the online trading platform to automatically close your position at your desired profit level (limit order), and/or close a trade if a trade is going against you (stop order).
There is almost always a party to take the other side of a position you want to establish, no matter when you place your order. Forex bid/ask spreads tend to be tight with minimal slippage.

24 HOURS  OPEN MARKET
From Sunday evening to Friday Afternoon EST the Forex market never sleeps. This is very desirable for those who want to trade on a part-time basis, because you can choose when you want to trade--morning, noon or night.

LEVERAGE
In Forex trading, a small margin deposit can control a much larger total contract value. Leverage gives the trader the ability to make extraordinary profits and at the same time keep risk capital to a minimum. Some Forex firms offer 200 to 1 leverage, which means that a $50 dollar margin deposit would enable a trader to buy or sell $10,000 worth of currencies. Similarly, with $500 dollars, one could trade with $100,000 dollars and so on.

PROFIT IN BOTH 'RISING' AND 'FALLING' MARKETS
On the stock markets, you can only make money if shares are rising, but in economic recession and falling 'bear' markets, there is little chance of making big money. Forex is different. One of the most exciting advantages of FX trading is the ability to generate profits whether a currency pair is 'up' or 'down'. A trader can profit by taking a 'long' position, (buying the currency pair at one price and selling it later at a higher price), or a 'short' position, (selling the currency pair and buying it back at a lower price). For example, if you think the US dollar will increase in value vs. the Japanese Yen then you will buy Dollars and sell Yen (go long). If you think the Yen will increase in value against the Dollar then you will sell Dollars and buy yen (go short). As long as the trader picks the right direction, a potential for profit always exists.

TRENDING NATURE OF CURRENCIES
Major currencies are still dominated by central banks, national financial policies and macro trends. This means that currency traders enjoy markets that have a greater tendency to trend than most markets.

EQUAL ACCESS TO MARKET INFORMATION
Professional traders and analysts in the equity market have a definitive competitive advantage by virtue of that fact that they have first access to important corporate information, such as earning estimates and press releases, before it is released to the general public. In contrast, in the Forex market, pertinent information is equally accessible, ensuring that all market participants can take advantage of market-moving news as soon as it becomes available.

NO ONE CAN CORNER THE MARKET
The FOREX market is so vast and has so many participants that no single entity, even a central bank, can control the market price for an extended period of time. Even interventions by mighty central banks are becoming increasingly ineffectual and short-lived, and thus central banks are becoming less and less inclined to intervene to manipulate market prices.

REAL-TIME QUOTES TO TRADE
The cash Forex firms provide two-way bid and ask prices for a number of Forex pairs via a free, streaming quote feed on a trading platform that usually has some analytical capabilities. Of course, this depends on the firm and the arrangement you have.
If you click on the posted bid or ask price on the screen, the position is yours at thatprice instantly. There is no slippage or a partial fill.