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Advantages and Disadvantages of Trading Forex

Nick
July 16, 2019
by Nick Alexander,

Advantages of trading Forex

  • The largest most liquid financial market.
  • Some of the lowest costs involved in trading with highly competitive spreads on offer.
  • Leverage of up to 500:1 can enable traders to profit from incremental price movements.
  • Open short and long positions in the market with a relatively small initial deposit.

 

Disadvantages of trading Forex

  • A highly competitive market with a significant number of buyers and sellers
  • Requires commitment from the trader in order to make well-informed decisions
  • Trading CFDs using large leverage could also mean large losses if the market moves against you
Good trading from Eightcap.
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