Forex
Key to Markets gives access to the Forex (Foreign Exchange) market; currencies are traded on the world’s most liquid market with daily transactions volume exceeding $5 trillion.
Until a few years ago Foreign Exchange was considered a privilege available only to financial institutions. Nowadays thanks to new technologies, even private investors can easily access this market.
Traders who work with currency pairs, simultaneously buy and sell different currencies with the purpose of gaining from their constantly changing value.
Using the popular MT4 trading platform allows traders to receive the most accurate real-time prices and adjust their trading to Live events and news, which significantly affect currencies' behavior.
Foreign Exchange is very dynamic; therefore leveraged trading is a fast and accessible way to gain from the constant changes in this market. However, it is not an easy market and successful traders are those who study different market conditions, use various trading indicators and analysis and manage their risks.
Forex trading has many investment benefits some of which are:
- Liquidity - With over one trillion US dollars traded daily in the Forex market and with millions of participants and transactions daily, there is always the opportunity to enter and exit the market at transparent pricing.
- 24 hr trading - The market operates around the clock, from the Sydney market on Monday morning to the close of the US market on Friday creating a 24 hour market. One of the biggest advantages of trading forex is the opportunity to trade 24 hours a day. This enables traders to react and take advantage of market movements at all times.
- Increase in leverage -Leveraged trading, also referred to as margin trading, allow investors in the Forex market to execute trades up to $100,000 with an initial margin of only $1,000.
- Predictable market - The Forex market follows frequently repeated trends. Currency markets exhibit certain regularities, creating price trends for market participants to follow. These price trends increase the chances of trading profitably.
- Lower transaction costs Forex market is much more cost efficient to invest in terms of both commissions and transaction fees. In general, the width of the spread in a FX transaction is less than 1/10 as wide as a stock transaction.
- Profit from all market movements - With forex, the market is continuously moving, so there are always trading opportunities, whether a currency is strengthening or weakening in relation to another currency. Thus, a trader has the ability to profit on both short and long trading strategies.