ANSWERS: 1
  • Currency trading used to be isolated to central banks and large institutions, yet technology has now allowed many individual traders to take advantage of the benefits that this form of trading offers.

    Commissions

    When you are trading currency there are no commissions; the only fees that you have to pay are the spread between the bid and the ask prices.

    Leverage

    One of the biggest advantages that trading currencies offers traders is leverage. In currency trading, the margin requirements are less stringent; this means that you have more leverage by using margin to increase your overall position.

    Flexibility

    When you are trading currency, you can profit from the up and down moves in the markets. This gives traders the flexibility to quickly adjust to changing market conditions.

    Returns

    Currency trading is considered to be volatile; this is used by traders to make larger returns by taking advantage of the up and down swings that can occur.

    Considerations

    Currency trading involves more risk than other forms of trading. Before beginning any kind of currency trading, it is advisable to discuss these risks with a financial professional to determine if this kind of trading is right for you.

    Source:

    Onada FX trade: Benefits of Currency Trading vs. Equity Trading

    Street Directory: Advantages of Currency Trading Online

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