Time Crunch Trading

Trade on Your Schedule

The single biggest advantage the forex market has over other markets is its 24-hour nature. A trader can put on or take off positions any time of day or night, regardless of their base of operations. This opens up the game to many individuals who otherwise might not have the time available to trade.

Consider, for example, the typical working person with a 9 to 5 type of job. Most folks like that cannot be expected to operate effectively as day traders in a market such as stocks. They simply can’t spend the required time to watch the market during trading hours. With forex, though, one could theoretically day trade in the evenings after work, or in the mornings beforehand. The forex market is never really closed (, in some cases you can even trade on the weekend!).

No (or low) Transaction Costs

For most traders, the forex market also offers the benefit of no transaction costs. For the most part, forex brokers do not charge commissions andif they do, they are relatively small. There is, of course, the bid/offer spread, which can be viewed as a transaction cost, but in reality, most traders buy at the offer and sell at the bid in whatever other market they trade, so there is really no difference. Actually, the forex spreads can be quite small in the major currency pairs.

Low (or no) Account Minimums

Forex trading is also open to a wider trading demographic in that there are many opportunities to open smaller accounts than is the case in other markets. There is at least one broker which has no minimum account size. What’s more, they tend to have no minimum trade size. That sort of flexibility opens the door to essentially anyone who wants to explore forex trading. This isn’t to say that all brokers are that flexible. There are, however, a great many who offer so-called mini-contracts.

Multiple Trading Vehicles

Forex trading can be done in a number of fashions. Many folks tend to think strictly of the spot market. While it is certainly the largest component, it is not the only one. The futures market has become a bit more attractive with the expansion of e-mini currency contracts. Doesnt fit here. What’s more, an array of other option trading alternatives have been popping up, providing traders with even more ways to take positions in the forex market.

Always Moving

One of the biggest attractions to forex trading is that there’s almost always something moving. There are a number of primary currencies involved, each of which is continuously interacting with all the others. Chances are, at any given time, there is movement in at least one of those exchange rates based simply on the sheer volume of trading and the number of global news events providing impetus to action.

Easily Trade Long or Short

In the stock market there are restrictions imposed on selling short. In forex there is nothing of the sort. It is just as easy to taking a short position as it is to take a long one.

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