What are the advantages of Forex online trading?



You are in charge! By living from trading you decide where you want to live, how much and when you want to work. The word “unemployment” will no longer scare you. And when they ask you what you do for a living, you can answer with that famous phrase from the movie Nine Weeks: I buy and sell money.
Economic crises, recessions will no longer worry you! Why? Because during crises the prices of financial products are constantly moving in one direction. It’s called a trend. While the investor in general is interested in upward trends, Forex traders do not care in which direction the trend goes, they can make money in any of the cases.
Take the year 2008 as an example. The prices of real estate go down. The currency of your country loses value. Even so, the price of oil continues to rise steadily. This last fact, very probably will not have caught your attention if you are a person who does not follow the markets. However if you are an online trader, you will notice these three trends and act accordingly: You will short your currency (what is called coverage, by the way), maintain positions in the real estate sector and go long in the price of the Petroleum.
Remember, financial speculation is the basis of capitalist freedom.
In a highly capitalized environment, forex trading operations can be one of the few effective defenses available to ordinary people against economic tsunamis, earthquakes and eruptions. Assuming, of course, that you know what you are doing.
How is all this possible?
First of all by the Spot Market. Mercado al Contado is a general term that is used by Forex traders to describe the online market where different currencies are bought and sold and where their prices are updated instantly, instantly.
At present, this is not difficult to imagine. The trader receives price quotes from his broker, who in turn receives them from their liquidity providers and they are all connected to a large market, the online Forex market.
Prices are marked by two forces in constant competition: supply and demand. When there is an excess supply, the price of an asset goes down. When there is an excess of demand, that price goes up. The more people are buying – the more the price will go up, and vice versa.
Secondly, Contracts for Difference (price). CFDs are the product that has transformed the financial market into what it is today. In the old days of Charles Dow there was no such trading. Only investment. Buying shares in a company with potential was the only possibility investors had. In case these shares went up in value, they could be sold and a profit would be made. However, if they started to depreciate, probably, even if they wanted to sell, nobody would want to buy them.
CFDs give traders another possibility, since it is not only possible to buy when the price of a good increases, but also to sell it when it is falling. How? By making a physical property on an unnecessary good, what makes your trade available to more people, therefore increasing the liquidity and ensuring that there is more often a buyer for values ​​that are lowered in value. Let’s give an applause to the ingenuity of the lords of Wall Street!

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