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Lesson 2: Advantages of Trading Forex

You Don’t need a Million Rand to Start Forex Trading

Unlike share trading where you need a decent amount of money to invest, Forex trading allows you to start with as little as nothing. I say nothing because some Forex Brokers such as AvaTrade will give you R400 just to open an account and you can start trading immediately. We don’t suggest trading with the bare minimum is a good thing but you get my point.

Leverage for Massive Profits

In Forex trading you have an option of leverage. If you select a leverage of 100:1 with your broker it means that if you open a $100 trade you are in fact buying or selling $10 000 worth of currency. Just remember that leverage is a double-edged sword and will increases your risk as well as reward. Most brokers offer leverage up to 500:1 and the good thing is that the choice to make use of leverage remains yours.

The Forex Market Never Sleeps – Choose your Trading Style

The Forex market is open 24hrs a day 5 days a week. (22:00 GMT Sunday – 22:00 GMT Friday). This means you can place trades whenever you are online. This is especially great if you’d like to trade full-time or on a part-time basis.

Trade from Anywhere in the World

You don’t need anything but a laptop and internet connection to trade on the go. Whether you are on a holiday in the Bahamas or sitting by your pool, trading Forex is very convenient. Don’t have your laptop with you, no worries! You can open and close trades on your telephone too.

The Forex Market is Massive with High Liquidity

With a trading volume of over $4 trillion a day the Forex market is 53 times bigger than the New York stock Exchange. You will always have instant access to the market to buy and sell currency at a fair market value.

No one can Corner the Forex Market

No hedge funds, banks, analysts or brokers can influence the market for