Forex trading has many advantages, including the ability to use margin trading, as well as trading from Sunday to Friday all day, ensuring high liquidity and high flexibility of transactions.
Leverage is the main feature of foreign exchange transactions, which means you only need to invest a small amount of initial capital or margin to start trading. Our margin ratio is as low as 2%, or 50:1 leverage.
Margin trading can use your capital more efficiently because you only need to deposit a certain percentage of the full amount of the position to fully participate in the market. This means that if the market price moves in a direction that benefits you, your potential gains will expand; if the market price moves in a direction that does not benefit you, your potential losses will also increase.
For example, by depositing a deposit of $100 in positions, you can operate a transaction with a total position value of $40,000. But remember that leverage not only magnifies the multiples of gains but also the multiples of losses. In addition, the market may be contrary to your judgment, and as the price changes significantly, the loss may exceed the initial margin.
Learn more about how to use leverage for foreign exchange transactions or view our foreign exchange transactions .
24-hour continuous trading
Foreign exchange belongs to the OTC market, that is, there is no need to trade through a centralized exchange like stocks or stock indexes. Foreign exchange transactions can be conducted around the world from Sunday night to Friday night.
This means that unlike other financial markets, foreign exchange investors do not need to wait for the market to open for market shocks caused by economic, political, and social events. They can respond to transactions within the first time of the event.
Money market prices fluctuate 24 hours a day, so no matter what trading strategy you use, you will find countless trading opportunities. But this also means that the market is constantly changing throughout the day, so it is more important to monitor positions and use appropriate risk management tools.
The currency market is the world’s largest financial market with the largest trading volume, with an average daily trading volume exceeding 5 trillion US dollars. So many global market participants open market transactions in 24 hours, also makes the currency market the most liquid financial market.
Learn more about foreign exchange transactions from us .