In conclusion of this short presentation of Forex, we can define the main causes of popularity of this market among both professional and amateur investors.
- Liquidity. This market can absorb such daily trading volumes as to surpass the capacity of any other market. High liquidity is a powerful attractive force for any investor, because it provides freedom to open or close a position of any size at a current market rate.
- Continuous access. The 24-trading is an important attraction. The Forex participants do not have to wait to react to any event, as is usual with many other markets.
- Flexible control. A position on Forex may be opened for just the period of time desired by the trader.
- Cost. Forex traditionally does not have any commissions exept for natural market spread between bid and ask.
- Unambiguous quotations. The majority of trades may be executed at a uniform market price because of the high liquidity of the market. It allows to avoid the instability inherent to futures and other currency investments where only limited amounts of currencies may be sold at the market rate at a given time.
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