Financial Knowledge

Advantages of foreign exchange margin trading

June 17, 2020

There are hundreds of stocks in the stock market, so stock selection will be a very difficult thing. In the foreign exchange market, the currency combination is very limited, which enables you to focus on these currency combinations and quickly catch their pulse.

The trading volume of the stock market is much smaller than that of the foreign exchange market, and tens of millions of non professional investors affect the normal operation of the market, making it more difficult to predict the movement of the market. Foreign exchange market is the largest financial market in the world, including many large players – banks, investment funds, companies and other financial institutions. Therefore, no matter how many individual investors participate in the foreign exchange market, the impact on the price is very small.

Another disadvantage of the stock market is that in a bear market, investors can’t do anything but be trapped. When the economy is booming, most investors can make profits, but the economic development is alternating. When the development is replaced by recession, investors can only hold their positions. In the foreign exchange market, whether the economy is developing or declining, investors can make profits, which is the short mechanism of foreign exchange margin.

The stock market can only be traded in a specific period of the day, generally from 9:30 a.m. to 4:00 p.m. Especially if you still have a job of your own, you will face a dilemma – either give up your job or exit the deal. Foreign exchange margin trading is available 24 hours a day, 5 days a week. You can invest in margin trading in your spare time at night.

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