Reasons why invest in the Forex Market

In recent years, investors of all categories and all countries have dramatically increased their participation in the currency markets. Why? Here’s a summary of the 8, plus an additional, reasons why investors are so attracted to the Forex market:

Reason #1: The world’s most liquid market

The Forex market can absorb such huge transaction volumes that the ability of any other financial market is negligible when compared with this market. In other markets like the stock market, low liquidity of some actions causes investors often have to liquidate their positions at an unwanted price. On the contrary, in the Forex market exists such high liquidity that investors have the possibility to open or close orders any time they want at whichever price they want.

Reason #2: Transparent market

Given the multimillion-dollar negotiation that takes place every day in the currency markets, it is virtually impossible to manipulate the market. This makes Forex a secure market for professional racers.

Reason #3: Continued negotiation market

Something that’s fascinating to participants in the Forex market is its 24 hours nature. There’s no schedule for opening or closing; Investors can operate during a run time of 24/5.

Reason #4: Market without forced deadlines

Participants from other financial markets are constrained by having to adhere to a particular horizon in time. In the Forex market, however, a position can remain open as long as the investor deems necessary.

Reason #5: Market without implementation costs

Historically, the Forex market has not received commissions for services, except for a natural difference between the buying and selling (spread rate).