The highly volatile yet rewarding online forex trading world has not only opened up new business ventures but a whole new social market to thrive in online.
We live in exciting times. The world’s largest market, commanding a global turnover of over $5 trillion is now at your fingertips, thanks to online forex trading.
The forex market is an over the counter global market where investors and traders speculate, buy and sell world currency pairs. This trading system uses a base currency coupled with a quote currency, with the EUR/USD being the most commonly traded pair.
What makes online forex trading so popular?
The forex market is the easiest financial market to access today for all retailers and greenhorns with modest capital. It is open on all working days, 24 hours of the day and can be accessed anywhere in the world. Running on a gigantic broker and intermediary network, it has some of the best trading conditions there are.
The increased technological advancements of the day and superior online forex trading platforms have brought this trade once a preserve of the rich, hedge funds and multinationals to the masses. Now, anyone with a keen eye, ear, and a disciplined mind can access a high octane market that hasn’t shown any signs of a slowing down.
This age-old trade’s costs have rapidly decreased since its doors opened to retailers in the 90s. And with it, of course, came shifty characters who are increasingly giving it a bad name. This coupled with beginner’s lack of information on safe trading practices makes it also a perilous market to be in.
Its risks are unusually high because it is a speculative market easily affected by a lot of global market forces. Anything from elections, storms, airplane crashes to events as simple as head of state visits can trigger an avalanche of sentiments that will trigger the market’s highs and lows, profits and losses. These risks are also what make the possibilities in this market so endless.
The advantages of online FX trading
So do you fancy yourself a global currency trader? Looking to cash in on the market’s hype? Below are a few reasons to dip your toes in these very profitable waters.
- The volatility of the market
The key to making money fast is to choose volatile markets that combine with volatile instruments. A volatile market offers more opportunities to acquire and sell assets, and in the FX trading market, this avails price moves of 50-100 pips in a day at times. This, of course, could mean potential losses or gains depending on your trading prowess.
- It’s accessibility
With as little as $100, you can start your online forex trading account on your laptop. And if you are not ready to trade your hard earned dollars yet, you have the choice of practicing on demo accounts heavily reinforced with useful information from various plugins and add-ons.
The key to profit is to buy low then sell high. With FX trading you can trade in assets you do not physically own. Add leverage to this factor, and you can multiply these assets’ potential for profit. On the downside, these factors are what makes this market risky too because the opportunities for catastrophic losses also escalate with higher leverage.