7 Reasons Why You Should Learn To Trade Forex

If you’re into trading at all, you most likely know of the stock market, and you may have heard of the
foreign exchange market or forex. What you should know is that the latter is considered a bigger
opportunity- if you know how it works, and if you have the right tools to invest. The reasons are
countless for people to learn the ins and outs of forex trading. These are just a few reasons why you
should learn to trade forex.

But why should you learn to trade forex anyway? Are there any truths behind the crazy profit boom we
all keep hearing about? These points are some of the most important reasons why the forex market is
such a boom right now.

1. ENDLESS ACTIVITY
The forex market is open 24 hours on weekdays as it is a worldwide market. If you compared it to other
markets that function at certain hours and days, the forex market dwarfs other markets in terms of
activity and opportunities in the week. Investors can exploit trends and setups that happen within the
week, anytime.

2. LOWER COSTS
Due to the highly liquid nature of the forex market and to the technology involved in transacting the
trades, you have one of the most important feature that attracts traders to forex- the lower trading
costs. You can forget about the accustomed costs that take away from your bottom line and focus solely
on the spreads. Furthermore, spreads paid as commissions to the brokers in the forex market are
normally smaller than those other markets. This can only translate to better profits.

3. FREEDOM
Forex traders normally conduct business at whatever time is convenient for them- this translates to
freedom from normal office hours. Forex traders can operate at any time they wish. As expected, this
attracts people from different time zones, lifestyles, and experience levels. If you have an internet
connection, then you can trade from anywhere in the world.

4. TRANSPARENCY
Due to the electronic nature of the transactions, analyzing and managing your assets is highly efficient
and easier than it used to be. All your information is accessed through your platform from your
computer. Deals are executed as you see them and as they fit your strategy. This gives you a better feel
of the market cycle, making your decisions easier and your predictions more accurate on every trade.

5. STABILITY IN PRICE
Because your trades are executed immediately, you normally get the prices that you’re quoted on your
platform. The stability of the prices and speed of transaction attracts a lot of traders to trade forex. If
you trade stocks, you know your trade could potentially span a day or two thus giving a chance for the
price to slip and change over a weekend. Your money is not tied up for long periods of time, giving you
more control in trading forex.

6. STABILITY IN PROFITS
Since your trading involves only a currency pair and not multiple combinations of markets and trends,
the opportunity for profit is always there. There is no bulldog watching of rising or falling of markets,
goods and industries. Profits can be achieved whether the market is bullish or bearish for one currency
against the other. What matters is the direction of the trade in the right currency pair.

7. LEVERAGE
Unlike other markets where leverages are small, forex trading allows for higher levels of leverage,
providing the opportunity to trade to up to a hundred times the assets in your account. Forex brokers
can allow a lot of leverage depending on the type of account. Naturally, this can also convert into higher
risk if you don’t know what you’re doing, thus, the importance of learning to trade forex the right way.
Risk management is very important to protect your account from highly leveraged losses. It is very
important to learn to trade forex the right way from the start to avoid potential losses.

Forex trading is considered the perfect free market for logical reasons. All traders are given an equal
playing field. Even when one currency is falling, by definition, this just means that there is another
currency rising against the one that is falling and opportunity for profit exists. An unlimited earning
potential, the stability, the freedom, and the even opportunity are the main reasons why you should
learn to trade forex and what makes the foreign exchange market an exciting opportunity for anyone.