The reason most people get involved in Forex trading is that it is possible to make big returns for a small outlay. The leverage ratio (i.e. the amount of money required to invest versus the potential returns) is very high in Forex trading compared to other types of trading so it is a very attractive option.
As you might expect, there is also the potential to make huge losses so make sure that you are comfortable with the amounts you are trading. Costs are relatively low compared to many other markets. Different Forex trading platforms have different minimum deposits which vary enormously from a pound up to several thousand pounds.
The market is also highly liquid compared to other markets. This means that you can start and stop trading more or less whenever you want and theoretically, there are no daily trading limits imposed on traders. Your Forex trading platform may impose its own limits so check before you decide on which is the right platform for you to trade on. The market is truly 24 hours, currency is not tied to the opening and closing of individual Stock Exchanges, unlike commodity trading.
Forex trading is also very flexible. Because Forex trading is not tied to one individual market and it is easy to move your money from one currency to another, your money is not tied up for the long term. So there is no such thing as a Bull market or a Bear market in Forex trading – the market is whatever you make it.
