Before analyzing the reasons why forex trading is more popular and the key strategies of its online trading, first it may be necessary to explain what forex trading is. Forex or foreign exchange trading is the largest and most liquid financial investment market in the world. Its estimated the average daily market capital turnover amount in excess of $ 1.5 trillion, there are many professionals involved in forex trading all over the world. In a nutshell, it can be described as the concurrent buying of one currency and concurrently selling of another currency. A lot of article claim that Forex is one of the best home businesses that could can be pursued by any individual and earn thousands of dollars annually. An important fact to note in foreign exchange trading is that the strongest currency is listed first in the pair of trading for example between the Euro Currency and the US Dollar, in this the it'll be depicted as EUR/USD as the US dollar is relative weaker to the Euro currency according to the proposition of the forex investor. Below are reasons as to why forex trading is so popular in developed and well performing financial market.
The first reason foreign exchange trading id so popular is the limited risk of capital loss. Most of the investors in forex trading are risk averse in that they seek additional returns with minimal amount of risk at their disposal. Numerous but not all forex or foreign exchange trading platforms do not allow the investors to trade once the forex account equity amount falls slightly below the required margin of safety or level, most of these trading platforms will automatically liquidate the investor's currency position before the account can eventually go negative. There are no specified margin calls in foreign exchange trading thus no need for the investors to worry about. The trading platforms offer uttermost leverage of up 100 times trading account value thus shielding the investors from uncertainty.
The reason that attributes to the popularity of the foreign exchange trading is the ease, accuracy of trading as well as the cheap trading costs. Most of the forex trading follows the sun around its orbit and charges no commission which enables existing and potential investors to trade 24 hours a day at their desired location. They offer real time quotes, news and charts to facilitate efficiency of forex trading. The cheap trading costs are as result of pip spread which is used to compensate the introducing broker as well the forex trading company for example, a EURO/USD pip spread may 2 pips which are equal to $20. The investor leveraging $50000 of EURO/USD with a trading cost of $10. In addition some of the companies extend free practice forex trading accounts to newbie investors so that they can learn foreign exchange without incurring any risk.
All successful investors in forex or foreign exchange have certain and key trading strategies that they follow whenever they trade in order to make profitable trades. These strategies are basically based on some form of market analysis; investors need to carefully interpret these strategies in order to predict the movements of the forex market. Technical analysis and fundamental analysis are the two basic strategies of analyzing and predicting the movements of the forex market, however technical analysis is preferred in analysis and prediction of movement which clear and deeper understanding yields higher returns.
 http://forextradinglearning.com/about-trading-forex
The first reason foreign exchange trading id so popular is the limited risk of capital loss. Most of the investors in forex trading are risk averse in that they seek additional returns with minimal amount of risk at their disposal. Numerous but not all forex or foreign exchange trading platforms do not allow the investors to trade once the forex account equity amount falls slightly below the required margin of safety or level, most of these trading platforms will automatically liquidate the investor's currency position before the account can eventually go negative. There are no specified margin calls in foreign exchange trading thus no need for the investors to worry about. The trading platforms offer uttermost leverage of up 100 times trading account value thus shielding the investors from uncertainty.
The reason that attributes to the popularity of the foreign exchange trading is the ease, accuracy of trading as well as the cheap trading costs. Most of the forex trading follows the sun around its orbit and charges no commission which enables existing and potential investors to trade 24 hours a day at their desired location. They offer real time quotes, news and charts to facilitate efficiency of forex trading. The cheap trading costs are as result of pip spread which is used to compensate the introducing broker as well the forex trading company for example, a EURO/USD pip spread may 2 pips which are equal to $20. The investor leveraging $50000 of EURO/USD with a trading cost of $10. In addition some of the companies extend free practice forex trading accounts to newbie investors so that they can learn foreign exchange without incurring any risk.
All successful investors in forex or foreign exchange have certain and key trading strategies that they follow whenever they trade in order to make profitable trades. These strategies are basically based on some form of market analysis; investors need to carefully interpret these strategies in order to predict the movements of the forex market. Technical analysis and fundamental analysis are the two basic strategies of analyzing and predicting the movements of the forex market, however technical analysis is preferred in analysis and prediction of movement which clear and deeper understanding yields higher returns.
 http://forextradinglearning.com/about-trading-forex