Monday, April 11, 2011

3 Reasons Forex Trading is So Popular

There are 3 main reasons for forex trading to be popular in the market. Before going into justifications its required to discuss about it. It is currency trading. It is the biggest financial investment market around the globe. Forex is simple buying of one currency and selling of another currency to make some profit. Let the Euro is going to increase compared to Dollars value. If you have got some USD/EUR then its best time for selling.

The #1 reason behind forex trading's popularity is its ease and accuracy during trading. It has no time to on/off the market. Its 24/5. So from anywhere, anytime an investor can go for Forex Trading even from his/her bedroom. Some platforms offer real charts, indicators in free.

The #2 reason is its inexpensive trading cost. Many companies even charge zero commissions during trading. They and brokers are compensated by pip spread.

The #3 reason is, the low risk in capital loss. Most of the companies don't allow to trade an investor when the balance goes down beyond a fixed marking or margin. It indicates the zero profit-zero loss area. It is there to help the client before his/her account goes to negative. Also the trading offers leverage to upto 100 times.