Advantages of trading Forex
24 hour market, trade anywhere, anytime.
Open 24hrs and five days a week, the forex markets are accessible to trade anywhere, anytime. The forex markets are at their peak when multiple time zones are trading simultaneously. The market opens every Sunday afternoon in New York and does not close until Friday evening in New York.
As a forex trader you have several advantages because of these conditions: they allow you to react to forex news with immediate trades.
With FP Markets forex products traded based on leverage there is the potential to open positions with significant values. As an example, a trader with $2,000 in their trading account and a leverage of 100:1 could open a trade with a value or exposure of $200,000.
Risk management is important in the forex markets because traders have to have position limits based on the free equity in their trading account. Indeed risk can be minimized because of the online capabilities of the MT4 trading platform, providing margin call notices if the free equity in the trading account isn’t sufficient to continue to hold the positions.
In addition, each trading account is protected by automatic Stop Out (auto liquidation) that closes open positions whenever the margin levels drop below the Stop Out level: limiting the chances of your trading account balance beoming a negative. However, do bear in mind that all markets can “gap” and hence, there is always the possibility that your trading account could become negative.
Simply put, the underlying forex market is the most liquid in the world. As the forex trading markets are always liquid, Margin FX contracts offered by FP Markets can be opened and closed at all times.
The tight spreads and low fees mean trading in FP Markets Margin FX contracts are attractive.
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If you require information about any of the products or services we offer, please don’t hesitate to contact a First Prudential Markets representative on 1300 376 233 (Aus) / +61 2 8252 6800 (Int) or Email Us.