One of the greatest fascinations of the Forex market is the continuous trading, which is not interrupted by pauses. Since the platform of the forex broker can trade from Sunday evening until Friday night, there are several benefits for active traders that are in stock trading or trading of financial derivatives unthinkable. One of these advantages is the complete absence of so-called opening gaps or overnight gaps. These phenomena are price gaps between the closing price of the trading day and the opening price of the following day. Opening gaps create major risks for active traders who work with considerable leverage. Not infrequently, large losses to be absorbed up to the total loss caused solely by such price gaps.
Price gaps make it impossible to cut losses by the usual methods. On the Forex market, active position traders and day traders to act much better and more effectively manage their risk of loss. That's one of the reasons why the forex market is known as the pinnacle of speculation. Purely "technical" problems just outlined as price gaps have to cope with market players not here. Another advantage of forex trading is the variety of currency pairs that are available and always offer an almost infinite liquidity. While in stock trading about a dozen liquid indices for about half of the day are available, traders can choose the currency market from 40 to 50 currency pairs that can be traded around the clock with maximum liquidity.
The wide selection allows you to find almost always promising market constellations which have a promising risk-reward profile. This will also improve the chances of the trader.
No comments:
Post a Comment