These days there seems to be a constant interest among people form all walks in life related to Forex and how to use this capital market to attain a lifestyle involving more freedom of action but without compromising a good income capable of doing much more than just paying the bills. And Forex is a great attractor because of its easy accessibility and great advantages over other capital markets.
Among the number of advantages your will find in Forex trading there are two that are very important. They are leverage and high liquidity.
When we talk about leverage what we mean is that in the Forex market, a small margin used as a deposit can control a much larger contract value. This is, with a few bucks you can trade as if you had a full load of cash. Also leverage gives the trader the ability to make good profits, and at the same time keep risk capital to a minimum. For example, many Forex brokers offer leverages of 200 to 1 , that mean a $50 dollar margin deposit would enable a trader to buy or sell $10,000 worth of currencies. That's the power of leverage.
Now let's talk about high liquidity. This is directly related to the size of the market. Because the Forex Market is so enormous, this huge size translates into an extremely liquid market. This means that under normal market conditions, you can instantaneously buy and sell at will from the comfort of your trading station. You are never "stuck" in a trade as often happens in other capital markets. This high liquidity allows you to even set your online trading platform so it will automatically close your position at the desired profit level or close the trade if it's going wrong.
This is the kind of flexibility you can have when trading the Forex. Something not every capital market will allow you to do.
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http://www.1-forex.com
Article Source: http://EzineArticles.com/?expert=Adrian_Pablo
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