Why The Forex Has Become Such A Popular Market



The forex has become such a popular market over resent years for a number of reasons.

We are going to take a look at just a few of the main ones here.

1. Internet

Forex trading used to be limited to the banks and large firms. With the out brake of online brokers offering very solid trading platforms, detailed charting packages and demo accounts which let you trade real time with virtual money, it has become all too easy for private traders to trade the forex.

2. The possibility of making a lot of money with little initial outlay

People can see the possibility of making large sums of money are endless and with leverage you don't need to have so much opening capital to trade large positions. If a broker is offering 1:200 leverage, then a trader only need have £500 in their account to trade a position worth £100,000. Now it's not as easy as that for sure but the potential is there and that is enough to draw the people in.

3. Open 24 hours

Unlike trading the stock markets for examples the London stock exchange, the forex market does not shut during the working week. The forex is traded heavily around the clock, all around the world. So it does not matter where you live in the world or if you have a full time job during the day you can always find the forex open for business. This is great for all traders whether you are an intra-day trader moving in and out of the market in a short space of time or one looking to hold a position for days or even weeks at a time.

4. Volatility

Volatility makes the forex market a risky place to be if you don't know what your doing or you don't have the proper risk management systems in place. On the other hand what makes the forex such a popular market is traders recognize that with this added risk there comes the potential to make large gains/sums of money. The forex is seldom a boring place to be and even on a slow day the market can move up to 100 points. On a day when the market picks up the pace, boy does it go! And that is what traders need, something to happen. You are never going to make much if a market only moves sideways, so another great attraction of the forex volatility.

5. Taking your investment into your own hands

After the banking crash many people have lost trust with bankers, when they watch the bail outs funded by the tax payers and still hear of big bonuses paid to the bankers. Only to find out the tax payer doesn't receive so much money for his hard earner savings and then has to pay more in interest for any borrowings! It's no wonder so many look to take the future of their investment into their own hands and look to other ways to invest. One of those ways has been more and more increasing the forex which is why it's such a popular market.




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