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Hi this is Henry with 4xLearning, and here is a quick video on the benefits of Forex Trading.
As most retail Forex traders, one of the most appealing benefits is the use of leverage. A typical US broker will give you 50:1 leverage, or for every $1 that you put in your account, you get access to $50 worth of trades… imagine if the real estate market or the stock market were to give you this kind of leverage, it’s simply mind-boggling… and note that’s on the low end of leverage, as I know many off-shore brokers offering up to 1000:1 leverage, which is just totally insane!
Word of Caution: with leverage it can amplify your gains, but it can also amplify your losses, so it’s like a two-edged sword…
Other benefits to Forex trading is the 24 hours continuous market, because Foreign Exchange deals with the global market, it give you the flexibility of trading during the timeframe that best suit your schedule…
Don’t forget the high liquidity factor, because Forex daily volume is around the 4.2 Trillion Dollar range, there are always traders buying and selling during all hours of the day, giving you access to the largest legal cash market in the world.
And of course, the relative simplicity of Forex Analysis… Now I am not saying that it is easy to make a profit in Forex, but the research is pretty straight forward in my opinion… Instead of dealing with thousands of stock symbols and various exchanges and industrial sectors, you can just concentrate on 8 major currencies and their respective fundamental outlooks… it does seem much simpler…
Last but not least, with the uncertainty that is going on in global economy, having access to the Foreign Exchange Market provides a hedge to your assets. With most conventional assets prone to currency depreciation, you can open trades to hedge your own assets… We’ll talk more about this in future videos.
So to recap, everyone should trade Forex because of leverage, liquidity, flexibility in trading hours, simplicity in researches, and of course, access to a market that could be used to provide hedge to your own currency.
If you like this tutorial, please watch the video and leave your comments below and don’t forget to check out our other videos on the Forex Basics series.
Next Lesson: When should I trade Forex?
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