Reasons Why The Forex Market Is Popular Among Traders
From EjWiki
The Forex market is the most popular market in the world. Unbeknownst to most, it has an average daily trading volume ranging around $5 trillion. In comparison, the daily trading in stocks is only around $1 billion.
So, why does forex enjoy such popularity?
While the stock market in Indonesia is also traded in huge volumes, it comes nowhere close to forex which has a much larger market capitalization. Following are the reasons why it is popular:
Ease of access: Unlike stocks, the minimum investment required to enter the forex market is relatively low. Traders can open accounts as low as $50. With such easy access, forex trading has moved closer to the traders in the middle-income category.
Demand and supply: digitally honeypot project Unlike the futures or stock market, demand in foreign exchange markets is always existent. This is because of the constant demand and supply of currencies across the globe. This makes it the most liquid market in the world.
Technological advancements: Owing to its large size, the industry employs some of the most cutting-edge technologies for trading. With the increase in trade execution speeds, the market has more opportunities to trade and allows an ever increasing number of traders to take part in the market. Advancements in software have made the industry accessible to individual traders in increasing numbers.
Developed community: With the advent of the internet, the retail foreign exchange trading industry was democratized. More individual traders were able to access the market through forex brokers who now set up remote trading accounts right on the desktops of traders. This has brought in retail traders who trade close to 250 billion dollars every day.
Marginal trading: Unlike stock markets, Forex brokers allow trading on leverages. This means that traders can open positions much larger than their trading account can allow. Some brokers allow leverage ratios of 1:500. This vastly magnifies the profits of traders making it a very lucrative industry.
Millions of individuals across the globe take part in the Forex trading industry and profit from it due to its robust features and advanced technologies put in place. For beginners looking to enter Forex trading in Indonesia, now more than ever is the right time to get into it.
To know more about the basics of Forex, it is advisable to enlist the support of reputed Forex brokers like WesternFX
