Have you been seeking information about the forex exchange and online trade without success? Don’t worry. You’re at the right place. In the past decade, many people have tried to put their money in financial markets; some have been able to make life-changing money, while some have lost their hard-earned money. Among the several financial markets available, the forex market on invcenter is the easiest, with relatively low risks.
The forex exchange market has trading of more than $5 trillion, making it the most popular financial market in the world. Over 9.5 million people trade forex online globally. You might see testimonies on TV about how people could make a lot of money, but you’re still not sure whether to join forex or not.
Forex trading is indeed very prevalent but is it really worth the risk? Let’s take a look at why you should invest in forex in 2021.
High liquidity
Forex liquidity means that you can trade forex with other types of financial instruments. The forex market is by far the most liquid among financial markets. For instance, the liquidity of stock markets is relatively low, making it hard to trade in collapsing markets. On the flip side, the high liquidity in forex comes in handy to enhance trade in both falling and rising markets.
You can use the short selling technique to gain from falling prices in falling markets. For example, the Euro is trading at 1.3 against the US dollar and then sell it, speculating that its value will reduce. If the trade closes at 1.1, you will have earned a profit of 0.2.
Transparency
There are no specific locations trade currencies, meaning that the forex market is decentralized. That means that there’s transparency within, and no one is restricted from joining. You don’t need much to get started. You only a computer or a mobile phone with internet and begin checking the latest news and analyze data.
Leverage
One reason you should invest in forex trading in 2021 is the leverage you get from forex brokers. Brokers from the stock market offer a leverage range of 20:1 to 50:1, while you can get a leverage range of 400:1 to 500:1.
Leverage lets traders get significant positions with the bit of amount they have. For instance, you can get a %60000 position with only 2,000 using the 50:1. With leverage, it’s possible to boost your profits, or worse still, losses.
Volatility
Volatility is the degree of the change in price in a financial market over a given period. Volatility sets the difference between those traders who earn so much money and those who get losses. Volatility carries both the possibility to make high profits and also increases the risk of a loss.#
The better part is, you can always see price movements from 50-100pips for major currencies daily. The USD /CAD, GBP/USD or the USD/JPY can hit even more than 100 pips for a day. that means if you speculate prices to increase with 80 pips and hold 100000 currency units, you stand a chance to have an $800 profit if one pip in a standard lot is equal to $10.
Low costs of trading
You no longer have to worry about commissions and exchange fees. You will find most brokers offering free trade without commission, requiring you to only pay for the difference between your bid and the asking price of the currency pair (spread). Besides, some forex brokers offer spreads as lows as 0.0 pips, making the cost of doing forex low compared to other markets.
Final thoughts
Forex trading is indeed an investment worthwhile if you familiarize yourself with its dynamics first. Like other business, you have to be disciplined, work hard, and achieve goals in the short and long run. Join forex today and begin a remarkable journey of financial independence.
