Forex Market Advantages compared to the Stock market

The currency generate profits on the markets up and down Unlike the stock market, the Forex market has no cycles of growth and falling prices (in English referred to as "Bull Markets and Bear Markets" ). Since there are no restrictions on sales in the short term, there is always the possibility to generate profits regardless of the direction taken by the market.

Higher levels of liquidity, 24 / 24 The foreign exchange market is the financial market and the largest with more liquidity, with a daily volume of transactions of $ 1.5 trillion (what we call one billion or a billion billion is in English called trillion). It runs from 24/24 to Sunday at 17h00 (New York time) in Australia and Singapore and started in Japan and Europe at 2 and 3 am, respectively. The market closed on Friday at 16.00. The stock market operates from 9:30 am to 16:00, which limits the opportunities to make profits for the participants.

Financial leverage of 100:1 means to leverage the use of external capital per unit of capital invested. For example, a leverage of 2:1 (typical of the stock market) provides an investor an exposure that is twice his investment. FX International Group offers a leverage of 100:1 and 400:1 in some cases, through its trading platforms, which means that for every $ 1,000 the investor has access to a purchasing power of $ 100,000.

Even if the positions with high levels of leverage may cause the loss of all capital invested, this feature is also a powerful tool for capital growth if used properly. The leverage is a necessary feature on the Forex market because the major currencies fluctuate on average less than 1% per day.