Reasons Why You Should Choose Forex Trading Over Others

The forex market is indeed unique in the sense that traders can access the market throughout the day and night. Unlike trading in shares and futures, there is no need to wait for the markets to open. It’s a 24X7 market; there is always a major financial market open somewhere or the other in the world.

Forex trading works perfectly well for those individuals who are committed to a nine to five job because markets around the world open and close at different times. Stock market traders are hampered by the inability to trade in stocks actively after the markets are closed and during weekends.

Trading in stocks and futures markets requires you to have access to communication networks especially when you need to trade pre-markets. Chances of prices fluctuating especially when there are some dramatic political developments or news when the markets were closed can affect prices hugely.

When you trade in forex, you do not have to worry about liquidity issues especially when you are trading in major world currencies such as USD, GBP, Euro, Japanese Yen and AUD or NZD because most of them involves the US dollar. Liquidity is severely hampered when you trade in stocks, futures, commodities and options because they cannot be traded after closing.

When you trade in foreign exchange the slippage you experience in prices are extremely limited. During normal options trading conditions there are no difference between displayed price and execution price. However, when there is higher volatility and uncertain political and weather conditions slippage can be substantial in stocks and futures but not in forex.

In forex market, you can short sell a currency pair without having to wait for any upticks as is required while short selling stocks. Order execution is effective and instant when you short sell forex. Another huge advantage of choosing forex trading over dealing with stocks and options is that there is always a potential to make profits regardless of market conditions. You have the freedom to long and short currency pairs whenever the opportunity arises. There are no exchange controlled activities and restrictions when you trade in foreign currencies. Daily activities can be carried on as per your reading of the market unlike stocks and features where there are many exchange enforced restrictions.

Finally, the forex markets offer the highest levels of leverage as compared to any market. Forex traders can execute trades up to $ 500,000 with an initial margin of a mere $ 5000.

At IG Markets, we offer a huge range of forex trading FX pairs, including all majors and exotic across the world. IG Markets also have an extensive range of options trading commodities, with tight spreads and no commissions to pay.



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