Friday 7 December 2007

Why is Forex Trading so popular?

Forex trading means "foreign exchange trading". Foreign exchange trading, or currency trading, is rapidly becoming one of the hottest business opportunities in the world of investment. In fact some claim foreign exchange trading is the world's most powerful home-based business. Many have used forex to make their dreams come true and achieve a level of financial independence and a lifestyle beyond what they could ever have imagined.

The reason why more and more investors are turning to Forex trading is that it is the method with the most advantages. It has huge advantages over traditional trading methods like stocks, bonds, futures or commodities.

  • If you're trading on the futures market you are buying a contract to purchase a particular unit of currency at a particular point in time. You have no way of protecting yourself against the market's sudden moves so your position can be liquidated at a loss. In Forex trading there are no dangerous gaps and moves because of the market's deep liquidity and continuous 24-hour trading.
  • In foreign exchange trading you have super-high leverage - meaning that you can be allowed to trade up to 100 times - or in the case of some platforms, such as Easy-Forex, 200 times! - what you actually have in your trading account. And what you have in your account is ALL you can lose!
  • This amazing leverage alone gives Forex trading a major advantage over trading the stock market.

I read that a Forex expert said"Trading Forex is like picking money up off the floor. NOT trading Forex is like leaving it there for someone else to pick up."

So - you may ask "How do I access this amazing market?"

Well - you MUST have the right Forex Trading System. I'll tell you more about that in my next post. Meanwhile, to find out more, have a look at http://www.bizwrite.co.uk/Forex/forexindex.html

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