Opportunities in Forex Trading

Advantages of the Trading on the Forex Market

Key Advantages of the Forex Market:

The Forex Market is open 24 hours a day, 5.5 days a week (this includes the ability to trade beginning Sunday at 5 p.m. in the U.S.).

The Forex market is known for its liquidity, meaning foreign currency can be bought or sold in the market without a significant change in price; the price remains stable through high levels of trading.

High degree of leverage (the use of market resources and information so that the potential gain or loss becomes magnified). Also called margin, this can lead to large gains, but also big losses. Proper knowledge of the market is required to offset the risks of leverage.

There is no bear market. This is due to the global aspect of the Forex market.

The advantages listed above are the general benefits of investing on the Forex market. However, there are more benefits investing in the Forex market.

24-Hour Trading Liquidity

As mentioned earlier, the Forex market is essentially a 24 hour market. As a result of this, it usually does not face lulls in the market (a bear market) or periods of illiquidity.

Investors and clients in the Forex arena can place trades continuously from Sunday 5 PM EST to Friday 4:30 PM EST; the trading pits do not close for the day. This provides the Forex trader the flexibility and continuous market opportunities that aren't available on other exchanges.

8000 stocks vs. 4 major currency pairs

With approximately 4,500 stocks listed on the NYSE (New York Stock Exchange) and another 3,500 listed on the NASDAQ (National Association of Securities Dealers Automated Quotation System), the choices can seem both never-ending and overwhelming for an investor, and especially for a beginning investor. A benefit of the Forex market is that it only has 8 major currency pairs. This leads to a more focused and expert knowledge on a smaller scale of investment options. And, it make sit easier for a novice investor to get into the market.

No Middlemen

The stock markets consist of a number of centralized exchanges. A problem associated with this is the involvement of middlemen such as brokers, agents, and general sales individuals. This leads to additional costs, usually accumulating in large fees. Spot currency trading eliminates the middlemen and enables clients to interact directly with market makers. As a result, Forex traders get quicker, easier access and cheaper transaction costs.

Market Transparency

Market transparency is the ability to clearly have knowledge of what is being traded, at what price, by whom, and where. A market/exchange with a higher transparency will lead to a more efficient market. IN the Forex market an investor doesn't need to worry about Enron scandals, or large buyouts, because they have access to real time information concerning currencies and countries. Overall, this leads to a highly efficient Forex market.

Speed and Quality of Executions

Due to the abovementioned liquidity of the Forex market, the execution speed and quality is better than that of other exchanges. In addition to this, the instantaneous availability of news and prices offers the Forex investor with the most recent information to work with.

Market Trends

The monetary volume and participation in the Forex market far surpasses any other market. Due to this, there are some of the smoothest trends available in any market. This offers Forex traders and investors a relief of not having to deal with significant changes in the market like price spikes and erratic investment behaviors, and it also offers a market where volatile conditions are not present as often as the other exchanges.

Better Leverage

One of the main advantages, yet sometimes a disadvantage, for traders on the Forex is the leverage potential at their disposal. In the Forex market, traders and investors can acquire a leverage ratio as high as 400:1. If used wisely, this can lead to huge gains in short periods of time. However, leverage is considered a double-edged sword, and if not used wisely, it can lead to some large losses.

$1 Million in Google AdSense Earnings

They are calling him the million dollar man. Jason Calacanis recently revealed in his blog that he is on track to earn a million dollars from AdSense over the year ahead. And if that number doesnt wake you up and have you sitting on the edge of your seat, consider for a moment that he reached this level in less than a year. His company only started using AdSense in September 2004. Calacanis runs Weblogs Inc., a network dedicated to creating trade weblogs across niche industries. And he quickly proven that AdSense is a credible advertising partner. As their network has grown, so has their AdSense revenue. In January 2005 they earned an average of $580 per day. In March it was $737. In May it was $1,585. One day in July, just before he made the blog entry referred to above, they earned $2,335. Remember that is just for one day. If they can take that daily average to $2,740 they be earning a rate of $1 million for a year. And Calacanis predicts that reaching daily earnings of $3,000 or even $5,000 is quite achievable. That quite an achievement. Keep in mind that Calacanis has 103 bloggers on the payroll and nine staffers. Even so, many webmasters would give an arm or a leg to have even a third of that. Google AdSense has been revolutionary. It has become firmly established as the darling of the online advertising industry. Although rumors are heard of major competitors launching a similar service, AdSense’s premier position seems secure for now. In essence, AdSense has made it possible for almost anyone with a web site or blog to earn some revenue from advertising, without having to employ sales people or spend precious time searching for advertisers. AdSense works like this. Webmasters sign up for an account in just a few minutes. They receive a small snippet of code to include on their web pages. Google will then automatically serve advertisements that are relevant to the content on the webmaster's pages. When someone visits the webmaster's site and clicks on one of Google's AdSense advertisements, the webmaster earns a fee. Advertisers can pay anywhere from five cents to a hundred dollars per click, and the webmaster receives a percentage of that fee. Many webmasters are content with earning five to ten dollars from AdSense to cover the cost of web hosting. But many, unsurprising, have higher ambitions. At a popular WebmasterWorld forum, participants share tips and encouragement on reaching a goal of $300 per day from AdSense. So it is no wonder that Calacanis created quite a buzz when he made his million dollar blog entry. Google have proven once again that they excel at designing innovative Internet services. If you are in the web industry and have not yet used AdSense, then perhaps you should try it out. Or if you are already using it, perhaps Calacanis’ impressive results will encourage you to track the performance of your AdSense units more closely, fine tune their positions and formats, and take your earnings to a new level.