Advantages of the Forex market
The currency is characterized by the largest volume of the auction, the lowest cost of the carried-out transactions, the fastest cash flow.
Now operations in the currency market are the main source of the income of the leading banks of the world, such as Chase Manhattan Bank, Barclays Bank, Swiss Bank Corporation, etc.
Jorge Soros's speculation on sale of English pound against DM which within 2 weeks made one billion dollars of net profit became classical, having made Soros well-known and having laid the foundation of its charity.
Primary benefits of the FOREX market
Liquidity. The Forex market operates with huge money supply and gives free rain when making trade operations practically of any volume at the price existing at the moment.
Credit shoulder. The principal difference of operation in the Forex market from operation in other sectors of the financial market consists in possibility of a purchase and sale of foreign currencies in the absence of the full amount necessary for carrying out operations. For the transaction inference the client needs to enter only an initial contribution (a mortgage margin) then he has opportunity to conclude bargains which volume can exceed really invested money in tens times. It is a so-called credit "shoulder" (leverage). For example, having placed on the account 10 thousand dollars in case of a credit shoulder 1:100, you acquire the right to make operations on the amount of 1 million dollars.
Round-the-clock access. Opportunity to make trade operations 24 hours per day
Globality and ubiquity. Carrying out trade operations availablly from any place on the globe where there is an opportunity to be connected to the Internet.
Absence of commission charges. The FXstart company, the leader in the financial market of Russia, doesn't raise any commission collections connected to carrying out trade operations in the Forex market.
Other important property of the currency market as it will seem not to the strange - its stability. Everyone knows that the main property of the financial market - its unexpected falling. But unlike stock market of FOREX doesn't fall. If actions depreciated - that is a failure.
If the dollar collapsed, it means only that other currency became stronger; for example yen which for some months at the end of 1998 became one quarter more expensive in relation to dollar. And there were separate days when decline of dollar were measured by percent. But the market didn't fall trade proceeded anywhere as always. Stability of the market and the related business consists in it: the currency - absolutely liquid goods will also always bargain.
Liquidity of Forex. The market operates with huge money supply and gives free rain when opening or closing a line item according to the market quotation existing at the moment. High liquidity is powerful attractive force for any investor since it provides him freedom to open and close a line item of any volume.
Directivity of the Forex market. Movement of currencies has quite a certain focus which can be traced for rather long interval of time. Each specific currency shows only to it characteristic changes in time that gives to investment managers of possibility of handling in the FOREX market; quite certain directivity