What Are Some Of The Factors That Make Forex Markets Different?
There are a number of factors that make the Forex market unique. Many of these factors can have tremendous benefits for traders worldwide. Two of the most important are the high level of leverage and the extremely high liquidity.
Forex markets have some unique features that provide an incomparable potential for profitable currency trading in any market situation. A trader need not wait for the opening bell as in the case of the exchange and has the opportunity to avail all fruitful market conditions at any time. Since the Foreign Exchange market is the most liquid market in the universe, traders can enter or exit the field at their will in any market condition.
As stated above, compared to the equity markets, Forex markets offer high leverage ratio. Although high leverage offers high profits, it may also expose the trader to extreme losses. Under normal market conditions, the bid/ask spread is less than 0.1% (10 pips). In the case of larger dealers, the spread could be smaller and may expand a lot in fast moving markets.
A bear market or a bull market for a particular currency is defined...
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