Do you want to get into foreign currency trading, but aren’t sure how it can benefit you? There are many advantages to foreign currency trading. First, in the last few years, the spread rates have tightened a lot. Most of the online FOREX brokers today will offer you a five pips spread on EUR/USD. This is the most widely traded currency pair.
The currency trading market is open 24 hours a day, meaning that you can choose to trade as much or as little as you want. If you are following a certain strategy then you won’t be interrupted by market closes, and if it’s easier for you to trade at night then during the day this is easily accomplished.
Currency traders sell before they buy, since you are always trading one currency for another. So when you choose to buy another currency you are first selling the currency that you are trading from, effectively you are never spending more money than you have.
One good thing in the currency trading market, unlike stock trading, there is no restrictions on short selling. Regardless if a trader is long or short or which way the market moves, there is a potential for profit. This means that there is an equal opportunity to profit during a rising or falling market.
If you haven’t already thought about trading currencies, you should. It is simple to do and there is money to be made. All you need is some time to learn and a little start up money and you will be on your way in no time.
Author: Gary PearsonThis author has published 27 articles so far.