Why Trades in Currency?

Why Trades in Currency?

Currency market has a huge level of liquidity and is open for 24 hours per day. It is relatively resilient to factors affecting stock markets and hence, can act as an effective means to expand one’s portfolio. However, currency trading is risky in nature, and requires careful planning and thorough risk-benefit analysis.[Read more]

The advantages that currency trading offers are:-

High Liquidity: Owing to the large amount of trades conducted per day, the currency markets offer high level of liquidity. Hence, one can enter and exit the market with relative ease
Lower costs: Owing to low level of spreads, lesser brokerage is involved in the transactions, which reduces the cost for the trader.
Leverage: Trading in currencies futures involves use of leverage through margin which is maintained with the broker. Hence, large transactions can be executed with lesser amount of cash in hand.
Round-the-clock trading: The currency market is open 24 hours a day, and thus, offers the convenience to transact any time of the day.

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