Why Trade Forex?
There are a ton of reasons why investors should choose foreign exchange (Forex) trading over trading stocks.
For starters, the Forex market is the world's largest market in terms of daily transaction volume, and it's almost the most liquid. This market is highly accessible given that it's open 24 hours a day, and investors interested in trading Forex can make use of far more leverage than they could by trading stocks.
The World's Largest market participants trade more than US$5 trillion worth of currencies per day, according to the Bank for International Settlements.
In comparison, consider the following information:
Another major benefit of having a larger market is that it makes it more difficult for individual traders and institutions to engage in price manipulation, which can cause securities to experience sharp price fluctuations in short time periods.
For starters, the Forex market is the world's largest market in terms of daily transaction volume, and it's almost the most liquid. This market is highly accessible given that it's open 24 hours a day, and investors interested in trading Forex can make use of far more leverage than they could by trading stocks.
The World's Largest market participants trade more than US$5 trillion worth of currencies per day, according to the Bank for International Settlements.
In comparison, consider the following information:
- The New York Stock Exchange's daily trading volume averaged US$38.5 billion during the first five sessions of May 2017.
- The Nasdaq's daily trading volume averaged close to US$85 billion during the first four sessions of that same month
Another major benefit of having a larger market is that it makes it more difficult for individual traders and institutions to engage in price manipulation, which can cause securities to experience sharp price fluctuations in short time periods.