Top Reasons to become a fulltime trader
There are different types of trading platforms like Forex, Stock, Futures, and so on where investors can invest in different kinds of assets. For example, in Forex, the assets an investor trades in are primarily different country’s currencies. All these markets offer different favorable features to attract potential investors. Traders in the United Kingdom evaluate all the provided facilities in these markets and choose the most suitable one for them to work in.
If you are about to join Forex, or are just thinking about it and seeking reasons to take part in the currency business, you should be reading the right articles.
Reasons to Choose the Forex Market over Others
The currency trading market boasts a great deal of advantages over other trading platforms. Here are some of the few that you can find motivating.
In the world of currency trading, nearly $6.6 trillion money is traded every day. It makes the platform the most liquid and the largest trading facility in the world. This facility can soak up transaction sizes and overall volumes of trade that shorten the maximum capacity of any other variation of the market.
For example, in the Futures field, a tiny $30 billion worth of cash is handled every day. Forex is an all-time liquid market, and any position and amount can be liquidated at any time. Stop orders can be executed without slippage or with only a little slippage. This is highly unlikely for a highly volatile market.
Trading starts at EST Sunday 5:00 pm when the Sydney session opens. After that we have the Tokyo session which opens at EST 7:00 pm. London is the next session opening at EST 3:00 am. And at EST 8:00 am, New York session opens, and at 4:00 pm EST it closes. To learn more about the trading session, visit this site. These sessions keep opening and closing in a cyclic manner and the traders can take advantage of the 24 hours market.
If you inspect the closing and opening times thoroughly, anyone can see that at the time the NY session closes, the Australia session comes back to open. It makes the FX world open for 24 hours, meaning that Forex is seamless.
As an investor, you can handle positive and negative news by immediate trading. If crucial data is released in the UK or Japan while the NY futures market is closed, the opening of the next day would have a wide ride. Overnight contracts exist in Futures. During times when liquidity is increasing, those contracts are thinly traded compared to the spot FX facility.
Very Little Commissions
With digital communications, Brokers are gaining more popularity and raging wider over the past few years. Many traders think that they might have to pay some commission to the brokers to join the FX industry.
However, in reality, the commission charges are nominal compared to what a trader has to pay in the futures market. Though FX joiners don’t have to compete with each other, there is a strong competition going on among the brokers all the time. This competition makes them keep their commissions and service fees to a minimum.
When trading Forex, a trader can get price certainty and fast execution under typical conditions. Conversely, the equities and futures platforms do not provide price certainty or immediate trade execution. Even with the appearance of digital exchange and limited execution speed guarantee, the prices for futures fills and equities on orders are always uncertain.
The rates quoted by a broker often reflect the last trade deal, but not necessarily the rate at which the contract should be filled. These are only a few opportunities and favors that Forex provides to traders. You will find other opportunities once you engage in the market in a disciplined way.