Trade FOREX From Home

Benefits of Trading FOREX

There are many benefits and advantages to trading the Forex market as a home based business. Here are just a few reasons why so many people are choosing to trade in the FOREX market as a home based business, rather than stocks, options or futures.

Open 24 Hours, 6 Days Per Week

The FOREX Market never sleeps. It is a 24 hour, 6 days a week market. A currency trader may take advantage of all profitable market conditions at any time. There is
no waiting for an opening bell as in the case of trading stocks. It is a 24-hour, continuous currency exchange that never closes. 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. Because of the overlapping time zones you can actually effectively trade the equivalent of 6 days per week.

Superior Market Liquidity

With $1.5 trillion changing hands daily, the FOREX market is also extremely liquid. This means that with a click of a mouse you can instantaneously buy and sell at will. Whether it's 6pm or 6am, somewhere in the world there are always buyers and sellers actively trading foreign currencies. 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).

Maximum Leverage

FOREX investors are permitted to trade foreign currencies on a highly leveraged basis - up to 100 times their investment. Leverage gives the trader the ability to make extraordinary profits and at the same time keep risk capital to a minimum. In stocks, for every $1,000 cash you invest, you control a maximum of $2,000 worth of stocks. The maximum leverage is 2:1. But with FOREX, if you invest $1,000 margin on a foreign currency trade, you can control up to $100,000 in currencies. Leverage gives the trader the ability to make extraordinary profits and at the same time keep the risk to capital to a minimum.

Profit Potential in Both Rising and Falling Markets

In FOREX trading you can profit in both rising and falling markets. There is no need to fear a falling 'bear' market. Trading currency allows traders to earn profits during rising and falling markets. One can just as easily "short" a particular currency as go "long", because currencies trade in "pairs". Thus, when you buy a particular currency, you are actually simultaneously selling the other currency in that particular pair. As the market moves, one of the currencies will increase in value versus the other. Of course, it is up to you to choose the correct one to be long or short. Since currency trading always involves buying one currency and selling another, there is no structural bias to the market. This means a trader has an equal potential to profit in a rising or falling market.

Low Transaction Costs

Active stock and futures traders often see substantial portions of their gross profits going to broker commissions, exchange fees, and data/chart feeds. In FOREX there are no brokerage commission fees. In FOREX what you see is what you get, allowing you to make quick decisions on your trades without having to worry or account for fees that may affect your profit/loss or slippage. In the equity markets, you must pay both a commission and exchange fees. The over-the-counter structure of the FOREX market eliminates exchange and clearing fees, which in turn lowers transaction costs. Costs are further reduced by the efficiencies created by a purely electronic marketplace that allows clients to deal directly with the market maker, eliminating both ticket costs and middlemen.
Because the currency market offers round-the-clock liquidity, you receive tight, competitive spreads both intra-day and night. Stock traders can be more vulnerable to liquidity risk and typically receive wider trading spreads, especially during after hours trading.