The forex market is one of the most unique markets in the world. As a result, it has gained a lot of interest from people all over the world. In Hong Kong, it is highly popular due to its relation to finance and a Hong Kong being a major hub of finance in the world.
In this article are features of the forex market that make it stand out among other markets.
Can be accessed from all over the world
The forex market runs over the internet. As such, it can be accessed by the trader from anywhere in the world. All that a trader needs is an active forex trading account loaded with trading capital and an active internet connection.
It is active 24 hours
One of the most unique features of the forex market is that it is active for 24 hours every working day. It is the only financed based market that operates for 24 hours. All other popular finance markets sleep at night and are active during work hours on the day.
This feature is enabled by the fact that it is supported bu four financial markets that are awake at different times of the day. No other market can claim to operate through different regions to be active for 24 hours every day except for weekends.
Requires a forex broker
A forex broker is a market intermediary who enables traders to access the forex market. In Hong Kong, there are particular brokers who have been in existence for close to 25 years. Brokers are also found in other finance markets. Forex brokers are unique in the fact that they offer their customers demo accounts in which they can practice and also offer leverage to trade with.
Forex brokers are legal entities that should be regulated by a government oversight body.
As previously mentioned, forex brokers provide leverage to their customers. Leverage in forex is a loan provided to the trader to ensure that they can take larger positions than their trading capital can allow them to. Leverage is provided in ratios but is determined by the broker.
This is a unique feature of the forex market as there does not exist any other brokers that offer their clients loans to trade with.
The forex market is the most liquid market in the world. The forex market has the largest turnover when compared to other financial markets. This allows traders to trade in whichever currencies that they like with the confidence that their trades will be profitable.
Liquidity is made possible by the fact that the forex markets have large volumes of transactions at any one time.
High levels of transparency
The forex market is highly transparent. First there are no oversight authorities overseeing the market only the market intermediaries.
Secondly, market participants are able to access the same information regardless of your amounts of capital. In other markets, there is preferential treatment. There are some market participants who have access to more information than others at different times of the transactions taking place. This is not so in the forex market.
Significantly low trading costs
Another unique feature of the forex market, is that they have much lower trading costs. You will rarely need any money to open a trading account. In addition, forex brokers do not slice off from a traders’ profits any commissions as happens in other finance markets. As a result, forex traders are able to keep more of their money than in other markets.
You can profit on any trade
In the forex market, traders can make profits on long or short position depending on how the market moves.
These unique features of this market have led to a growth in its popularity. Even so, forex trading requires a thorough focus and willingness to learn and not give up even when the going gets tough.
Those who persist in forex trading end up enjoying tremendous financial success in the trade.