Forex Trading

Forex trading job and Learn about cons

Forex trading job and Learn about cons

The profession of Forex trading is often seen as an easy way for one to earn money, but in reality it is a very challenging profession, although it is very attractive to some people. It is a large Forex market, but the process of trading currencies is very different from trading stocks or trading commodities.

Forex trading has emerged as a popular for-profit profession, especially for some people with practical and financial background. Being one’s own boss with all the comforts of making money from Forex using one’s computer is a sufficient and great motivation for both young job seekers and professional individuals with practical experience to consider entering the Forex market as a career.

However, Forex trading still has its own drawbacks, such as high trading risks and special price volatility.

Pros of a Forex trading career

There are quite a lot of great benefits offered by the Forex trading profession and they include:

Low costs

The process of Forex trading can have very low cash costs from brokerage and commission value. There are no commissions in the real and realistic sense of the word, the Forex broker makes profits from the value of the spread between the currencies of the Forex market.

But one need not worry about the process of including some separate brokerage fee in the trading, and get rid of general cash costs. Because when comparing it all to the stock market trading process, we will find the structural difference in private brokerage on a very large scale and traders should take these special fees into account.

 

Fits different trading styles

The Forex trading markets operate throughout the day, allowing for easy trades, which is very useful for short-term traders who like to take positions on short periods of minutes to a few hours. Few of the traders place trades during the full stop hours.

High Liquidity

Compared to any other financial trading market, the Forex trading market has the largest number of individuals participating in the market. This provides them with a special highest level of liquidity, which means that even large orders for trades are easily executed in them with high efficiency without any significant deviations in currency rates.

This eliminates the possibility of price manipulation by traders and price anomalies, thus enabling tighter and stronger spreads that lead to more efficient financial pricing.

There is no central or regulated exchange system

Since the Forex is an over-the-counter financial market and operates all over the world, there is no central or regulated exchange for the Forex market. Central banks in many different countries intervene from time to time according to their need, but these are rare events, and they also happen under harsh conditions.

Most of these developments are already being recognized and priced in the market. Such a partially decentralized and relatively unregulated market helps to avoid any price surprises.

If we compare this to the stock trading markets, where a company can suddenly announce that it is distributing financial profits or reports huge losses, which leads to huge changes in the price.

 

Trader friend’s price volatility

In the Forex market, the major currencies are often exposed to high fluctuations in price. If some trading positions are placed wisely, the high price volatility helps the trader in the chances of making huge trading profits.

Large variety of currencies

There are a large number of currency pairs in Forex, including eighteen major trading currencies. There can be special criteria for choosing the right timing currency pair, volatility patterns, or some economic development. Forex traders who love price volatility can quite easily switch from one currency pair to another.

Low trading capital requirements

Given the tight spread in Forex in terms of number of pips, a trader can easily start trading Forex with a small amount of his capital. 

Without any additional capital, it may not be possible to privately trade in other Forex markets such as stock market trading or futures trading.

 

Ease of entry

There are hundreds of technical Forex trading indicators for the short term trader to benefit from and numerous fundamental trade analysis theories and long term Forex trading tools, creating a great special option for the trader with a special level of special experience to get into the Forex quickly.

 

What are the downsides of a Forex trading career?

Basically, there are many advantages of a Forex trading career, but there are disadvantages:

Lack of transparency

Given the private and unregulated environment of the Forex market which is under the hands of the Forex brokers, one is actually trading against the professional trader.

Being a broker-driven person means that the Forex trading market may not be completely transparent.

Complex pricing process

The price of Forex is affected by many factors, primarily the politics of the world countries or their economy, on which it may be difficult to analyze some information and draw some reliable conclusions for Forex trading.

High trading risk and high Forex leverage

The Forex trading market is available with a high leverage, which means that it is possible for an individual to get a profit or a loss for several trading times from his capital.

Self-learning for traders

In the Forex market, traders can seek special professional help from trading experts. The Forex trader is completely alone but with little or no help.

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