The long and short of Forex
Now, more than ever before, retail traders have access to markets that weren’t previously available to average traders. The most significant of which is the Foreign Exchange Market, or forex market.
So what is Forex?
The Forex market is the largest and most liquid market in the world, allowing investors to trade currencies, commodities and indices to make a profit. But why should you trade Forex as opposed to any other market or asset?
First of all, Forex traders can short sell, or ‘bet’ on a price falling. Unlike many other financial markets, Forex allows traders to make money whether markets are going up, down, or zigzagging sideways. Now, the reasons for these up, down and sideways movements could be anything from a poor economy to a natural disaster, but Forex traders don’t have to worry about the reason, because there is money to be made in both good and bad economies or news events.
Also, the costs of Forex trading are low compared to any other financial market or asset. Traders can trade paying little or no commission and there are no exchange fees or data costs. When there are fees, they are nothing more than a slight ‘mark-up’ in price from the broker on the spread, which can be as little as 0 pips through a broker like Vantage.
Now, what about leverage?
Few investors understand the power of leverage because they have never traded any other market. If they had traded the stock or futures markets for example, they would need much more investment capital to start trading. Brokers like Vantage offer leverage up to 1:500, meaning it only takes a small initial investment, as little as $200, to begin making significant returns. However, this can mean there is also the possibility of making a significant loss unless a trader practises proper risk management.
Access to a true, global market
As the world becomes more and more global, investors hunt for trading opportunities anywhere they can. As of now, Vantage offers retail traders access to 70 Forex pairs, commodities and indices. So, if you want to invest in another country’s economy (or sell it short), Forex is an easy way to access a variety international trading opportunities.
The Forex market is the most accessible market in the world and can be traded from anywhere there is an internet connection or mobile phone signal. And, almost anyone can open an account, fund it and begin trading the Forex market in as little as 30 to 60 minutes.
When there’s opportunity to profit from currency movements 24 hours a day, five days a week, it’s hard to find a better market than Forex. To find out more about how you can get started in the Forex market, visit Vantagefx.com and begin trading from just $200.