Why Trade in Forex Instead Of Stocks?

The foreign exchange currency market is the largest platform for the two most active derivatives of futures and SWAP and is also the favorite of financial predators. It is no exaggeration to say that it is like the most brutal fight in the original forest. Due to the special nature of the Forex Market, retail investors with millions of dollars and tens of millions of "small money" can't stand the small waves of the foreign exchange market, and they will disappear in an instant.rnPreviously introduced the futures and swaps (SWAP), the following describes the trading market several times larger than the stock market - the foreign exchange currency market, which is the largest platform for the two most active derivatives of futures and SWAP, and also financial The favorite of the predators. The total amount of global foreign exchange transactions per day is as much as trillions of dollars. There are various financial centers around the world, various types of currencies are traded around the world. Forex market participants include commercial companies, central banks, investment banks, hedge funds, retail investors, currency issuers, note-issuing banks, multinational organizations, and governments. The foreign exchange market determines the relative value of different currencies. Speaking of the original intention of forex trading, mainly to assist international trade and investment, so that enterprises can convert into one currency to another one. For example, it allows US companies to pay for pounds to import goods, even if the company's income is in dollars. A typical foreign exchange transaction is when one party buys a certain amount of one currency and pays another equal amount of money. The uniqueness of the foreign exchange market is because: ● Its huge trading volume leads to high liquidity; ● its geographical location; ● It runs continuously for 24 hours, except for weekends (Saturday), ● Numerous factors affect the exchange rate changes; ● Relatively low-profit margins compared to fixed income in other markets; ● The use of extremely high leverage increases yield and loss rate.