Forex Introduction
Forex, commonly known as foreign exchange or FX, is the world’s most widely traded market, with an estimated daily turnover exceeding $4 trillion. Currencies are traded around the clock 24 hours a day, 5 days a week. AlphaBeta FX’s offering covers spot instruments, with attractive leverage and financing costs.
As the most liquid market in the world, high volume trades can be executed with no slippage, and stop loss orders are guaranteed for basic accounts during trading hours.
- Forex investing can offer some of the best reward/risk opportunities of any financial market
- Forex market hours are one of the most flexible of any financial market
- Massive trading volume, resulting in a high level of liquidity (the ability of a market to accept large transactions)
- No-one can corner the market
- Forex trading has among the lowest start-up costs in terms of money and time, of any financial market
- Traders can profit from the smallest movements in the exchange rate through the use of leverage
- Free “Demo” Accounts, News, Charts, and Analysis
Forex Advantages of the Forex Market
Commercial Traders
- Large corporations trade on the FX market to control revenues and expenses incurred in various currencies through hedging whereby a trade or multiple trades are opened in order to try and minimize on the losses in other trades..
Speculative Traders
- Investors trade currencies for profit. Most forex trading is speculative by analyzing market and political news (fundamental analysis) and/or studying the chart history of an instrument (technical analysis). Unlike other asset markets, in forex it is possible to profit from a currency losing value as it is from the currency rising in value.
Potential Risks of Trading FX
- Leveraged trading puts your capital at risk. You could lose all, or a large portion, of your trading capital if the market makes a significant move against your current open position/s
- Your losses may exceed your deposits
- Past performance does not guarantee future performance
- Tax benefits (if any) are subject to change and depend on your personal circumstances