There are several advantages to trading Forex over Equities. These advantages help make Forex trading the most popular form of trading in the world. This article will look at some of these benefits.
24-hour Market
24-hour Market
Firstly, the Forex market is a 24-hour market. It opens at 5pm EST on Sunday and remains open and trading until 4pm EST on Friday. This means that the Forex market offers greater flexibility for access. Therefore, it doesn’t matter what time you have available to trade, you will be able to find markets open and trading opportunities. For example, if you want to trade the Australian dollar versus the US dollar, AUS/USD, you could do so at any time of day or night during the week.
Equities on the other hand can only be traded the hours that the exchange is open. So, if you want to trade a particular stock, but the exchange where it is listed is closed, you will have to wait until the exchange opens to trade it. This may not be so convenient.
Equities on the other hand can only be traded the hours that the exchange is open. So, if you want to trade a particular stock, but the exchange where it is listed is closed, you will have to wait until the exchange opens to trade it. This may not be so convenient.
Opportunities in Global Markets
The 24-hour nature of the Forex markets and its global coverage means that there are plenty of trading opportunities. Forex can be influenced by political factors, economic factors and news flow from across the globe. The truly international nature of Forex trading means there is always an opportunity to trade. Most heavily traded market in the world.
Liquid Market
The Forex market is the most heavily traded market in the world, eclipsing even the likes of the New York Stock exchange. What does this mean for traders? This means that the Forex markets can be extremely liquid. The Euro versus the US dollar, EUR/USD, which is the most heavily traded currency pair in the world, is also considered the most liquid. A liquid market means there are few, if any issues trading quickly, frequently and / or in a large size. The trade would still be expected to go through. High liquidity in Forex markets also means that the spread (the difference between the buy and the sell price) can be very tight. This means that Forex trading can be cheap in comparison to equity markets, where spreads could be larger due to their less liquid nature.
How can I trade Forex?
You can trade Forex with Vantage FX. Vantage FX is an Australian based broker, which specializes in Forex, index and Commodity trading. It is AISC licensed and regulated and offers a wide selection of currency pairs, including major and minor pairs, with extremely competitive spreads and margins.
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