Advantages and Disadvantages of Trading Forex
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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