Many people have a doubt as why one has to invest in a Foreign exchange market. They also think that doing trading in a foreign exchange market is associated with heavy risks and contains lots of work. But the foreign exchange market is very convenient to do the trading and is very beneficial to the trader. Forex market has some unique features when compared to the local market.
- Forex market is always open except on weekend days, therefore you can enter in to a position or exit from that position at any time.
- It is completely working on online basis so that you can access these markets from any where using internet.
- There is no commission involved in the foreign exchange trading, although there is low transition costs involved. This is the most important and basic feature of forex market, because, you are trading currencies and not the negotiable instruments. The currencies always have their real value. If it is negotiable instrument, it’s value depends up on the other factors too.
- Forex market is a spot market, which means that the market deals with the current prices of a financial instruments.
- Forex market is a large quantity market, the daily turn over is very high, nearly 3 trillion dollars per a day.
Due to all the above reasons a forex market is different from a local trading market.