What are the Attractions of Trading FX?

There are many reasons for you to get hooked on FX trading.

1. The market is open 24 hours a day. As the market is opened 24 hours a day, you will be able to find
a time window to trade. When you are free, after all your work has been done, you can switch on the computer, login to your online trading platform and start trading. It could be in the evening for the
busy office worker. From 8 p.m. to 11 p.m. there will be opportunities to make some money. Unlike the stock market, when the office worker would have to juggle his office duty and watch the stock
prices during office hours, FX allows him to watch and trade the market without distraction during his free time. For a housewife out to make some extra income, FX is another alternative besides the stock market when their children are in school.

2. The daily volume for the FX market totals USD 1.7 trillion a day. That is more than the volume of NYSE, NASDAQ, and the London equity market combined. There is no reason for you to worry about a lack of liquidity.

3. Unlike stocks, the four major currency pairs account for a substantial amount (70%) of the FX volume. You just have to concentrate on the four major currency pairs. Time spent on analysis will
be confined to the four major currency pairs. You do not have to waste time analysing countless
companies.

4. There is a good daily range to keep you happy as well. The usual daily range for Euro/USD is close to 100 pips. Only on a few days a month will the daily range be less than 100 pips. Even when the daily range falls below 100 pips, it will have at least 80 pips.

5. Unlike Singapore stocks, where short selling is prohibited, in FX there is equal opportunity in both
long and short. There is no restriction on short selling. You can short a currency pair and hold it
for as long as you want so long as your margin is able to support it.

6. Small capital with great leverage is provided. Most FX trading platforms provide great leverage for
you to trade currency. Most platforms need you to put up only a 2% margin deposit. That is as good as 50 times leverage. Many brokers will provide 100 times leverage. At this ratio, you only need a
margin of USD 1,000 to short USD 100,000 against the Japanese yen.

7. When using online trading platforms, your trade execution is almost instantaneous. Once you
submit your buy or sell market order, the platform will report back to you in a second or two on your
order execution. Your broker’s platform is likely to provide news information and charting as well. You do not need to incur additional monetary cost to subscribe to news and charting software. By just
putting up a margin deposit with your broker, you will be ready to start trading.