Lesson 3 – Characteristics of the Forex Market
Other than the weekends when it is closed, the forex market is open 24 hours a day. There is no need to wait for the market to open and you can trade anytime you like. This flexibility has enabled many working professionals to take on forex trading as a side job. They can trade in the morning, afternoon, night or whenever they are free. The best thing is that this also means that no one can monopolize the market!
The forex market is so huge that no single entity, be it an organization, a group, a central bank or even the government can control the market trend.
In forex trading, only a small margin is needed to purchase a contract of a much higher value. Leverage enables you to earn high returns while minimizing capital risks. For example, a leverage of 200:1 granted by a forex broker would allow a trader to buy or sell USD 10,000 worth of currency with a margin of USD 50. Similarly, you would be able to trade USD 100,000 with just USD 500. However, leverage can be a double-edged sword. Without proper risk management, such high leverage trading may result in huge losses or profits.
In view of the huge trading volume in the forex market, under normal conditions, you can buy or sell currency at your desired price in a mere matter of seconds with just a simple click of the mouse. You can even setup an online trading platform to buy and sell (place order) at the right price so that you can control your profit margin and cut losses. The trading platform will execute everything for you automatically. It is fast and simple.
Free! Free! Free!
In addition to free simulation accounts, many trading platforms also provide news, charts and analyses free of charge. Market movements in a simulation account are the same as those in the actual forex market. Use a simulation account to build up your trading experience and confidence and find your way to success.
What are the tools needed?
You will only need a computer with Internet access. It is that simple! There is no need for you to spend thousands of dollars in training and courses that cannot guarantee you success. We believe that you can find your pathway to wealth creation by using the free resources available in our trade simulation system!