Why Forex Is a Viable Investment Option


There are many ways you can invest your money. The reason why you should pay attention to Forex investing is that it has numerous advantages you won’t find in other opportunities. First, the markets are open 24 hours, Monday through Friday: US market, Asian market, and the European market.

The best time for you to trade is during the overlapping periods. The overlap occurs between 5am and 9am EST, when the US and European markets work at the same time. The Asian/European market overlap occurs between 11pm and 1am EST. These are the times when markets are the busiest.

The risks

Forex market risks

When it comes to investments, playing with the markets can certainly pose a risk. You have futures and options so you get margin calls that could potentially wipe you out. If you find yourself caught in a bad trade, you will lose all of your money in the account and might also have to come up with a lot more from your bank, depending on the amount. There’s no question that markets can be very risky, but that does not apply to the Forex market.

The worst case scenario you might encounter in the Forex market is that you lose what you have in your account. But for that to occur, you have to do something that is incredibly stupid, such as making a huge trade and then, rather than following through, just leaving it as it is. If the market took a dive, and you were not there to get out – this would be a problem too. But if you are smart and quick, that will never happen.

Forex accounts

Forex accounts

Forex also offers you demo accounts. This is where you are allowed to trade using play money, which is referred to as paper trading in the industry.

There are also mini accounts. Rather than needing thousands of dollars to begin trading, you can open a mini account with only $300 dollars. Of course, you are going to be trading at 1/10 of a trade. What this means is that you control 10,000 rather than 100,000. But it also means you only risk 1/10, which is a real benefit.

Forex is a market with minimal risks, so it’s a good place to start for beginners. If you want to learn more about investing, look to other articles about the best Forex traders and how Brexit impacted the Forex markets.

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