Second, the transaction time is long, and it can be traded 24 hours a day. The foreign exchange market is open 24 hours a day, unlike the stock market, which only trades from 9:30 am to 3:00 pm. So, outside,
The foreign exchange market is suitable for active traders. Investors can trade according to their own schedule. At the same time, the 24-hour uninterrupted feature ensures the smallest market gap; In other words, the possibility that the opening price is significantly higher or lower than the closing price is ruled out. In other words, because of the 24-hour market, it is impossible to open or close positions.
Third, the transaction cost is low and there is no commission.
The cost of foreign exchange transactions is extremely low, with only a few points of bid-ask spread. In addition, the pure electronic market allows traders to trade directly with dealers, eliminating the cost of price tags and middlemen, thus further reducing transaction costs. Because the foreign exchange market provides 24-hour liquidity, traders get a narrow and competitive spread, making online foreign exchange trading a paradise for short-term traders.
Fourth, the two-way profit model. Foreign exchange transactions always involve currency pairs. When you buy one currency, you must sell another currency. You can hold long positions or short positions, no matter what the market is, you have a chance to make a profit.
Fifth, the leveraged trading model. Leverage ratio is one of the important factors to determine whether a market is worth investing, because traders can customize their risk exposure by using leverage.