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Thursday 12 January 2012

Around The Clock, Around The World


One of the biggest fascinations of the foreign exchange market is the continuous trading, which is not interrupted by breaks. As can be traded on the platform of Forex brokers from Sunday evening until Friday night showed several advantages for active traders who trade in shares or trade in derivative financial instruments are unthinkable. One of these advantages is the total absence of so-called opening gaps and overnight gaps. These phenomena are price gaps between the closing price one trading day and the opening price the following day. Opening gaps pose serious risks for active traders who operate with significant leverage. Not infrequently, large losses to be absorbed up to the total loss caused solely by such price gaps.

Price gaps make it impossible to limit losses by the usual methods. On the Forex market active position traders and day traders act very much better and more effectively manage their exposure to loss. This is one reason that the forex market is referred to as the pinnacle of speculation. Purely "technical" issues such as price gaps have just named market players can not cope here. Another advantage of forex trading is the variety of currency pairs that are available and thereby always providing virtually unlimited liquidity. While the stock trading around a dozen liquid indices for about half of the day are available, traders can choose the currency market from 40 to 50 currency pairs, which can be traded around the clock with maximum liquidity.

The wide selection offers the possibility to find almost always promising market constellations, which have a promising risk-reward profile. This will also improve the chances of the trader.

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