Forex trading has become one of the most popular tools for traders and investors today. In this market, forex trading has given many the opportunity to trade a market that was once dominated by large banks, multinational corporations, central banks and governments. The average retail trader now has the tools and leverage to allow them to make a move in the currency market.
Forex trading is done in the world’s largest financial market. $2.5 trillion dollars are exchanged each day and there is no time restriction for when a trader or investor can place an order. The forex market is also unregulated unlike the New York Stock Exchange.
Market hours for the forex start from Sunday 7:00 pm EST and close Friday at 5:00 pm EST. There are four major sessions that have the most volatility. These sessions are the London session, US session, Tokyo session and Singapore session. This constant availability of the market gives the forex trader a huge advantage of being able to open and close positions without the worry of markets closing and after hour trading to take place.
Also leverage plays a huge part for forex trading. Most people would like to invest in certain markets but are not able to, due to the lack of capital they have to be able to open positions. Forex offers such leverages as 1:400 where you can hold positions that would normally cost you your whole life earnings. Now the small retail trader can start trading at some places with as much as $250. Now is this a smart idea? Not really, because like any investment there is risk and starting with small capital leaves you very little room for a mistake.
Many people are tapping into this market to gain them the wealth they have always desired. Now the small guys can get into the game and make something of it.