Start Trading The Forex Market – Your How To Guide Part 3


In an increasing trend, seasoned traders, investors and entrepreneurs are diversifying their traditional investments like stocks, bonds & commodities with foreign currency, or FOREX, because of the following reasons:

  •  FOREX is the largest financial market in the world.

With a daily trading volume of over $2 trillion USD, the spot FOREX market can absorb trading sizes that dwarf the capacity of any other market. In fact, when compared with the $50 billion daily market for equities or the $30 billion futures market, it becomes quickly apparent this gives you, and millions of other FOREX traders, almost infinite trading liquidity and flexibility.

  • FOREX is a True 24-hour market.

The FOREX Market never sleeps.  Trading positions can be entered and exited at any moment around the globe, around the clock, 5.5 days a week. There is no waiting for an opening bell as in the case of trading stocks. It is a 24- hour, continuous electronic (ONLINE) currency exchange that never closes. This is very desirable for you if you want to trade on a part-time basis, because you can choose when you want to trade: morning, noon or night.

  • There is never a Bear Market in FOREX.

You can have access to a seamless exchange of currencies. Currencies trade in "pairs" (for example, Euro vs. the US dollar (EUR/USD); or US dollar vs. Swiss franc (USD/CHF), one side of every currency pair (for example, EUR/USD) is constantly moving in relation to the other. Thus, when you buy a particular currency, you are actually simultaneously selling the other currency in that particular pair. As the market moves, one of the currencies will increase in value versus the other. Of course, it is up to you to choose the correct currency to be long (you bought) or short (you sold).

  • High Leverage - up to 1000:1 Leverage.

You are permitted to trade foreign currencies on a highly leveraged basis - up to 1000 times your investment with Hydra Markets LLC and with some other brokers.

A standard $100,000 USD currency lot can be traded with as little as 0.1% margin, or $100.

Hydra ECN live accounts are permitted to trade with just 0.1% margin, meaning, just $10 allows you to control a 10,000-unit currency position.

Futures traders, who are accustomed to margin requirements generally equal to 5-7%-8% of the contract value, will immediately recognize that the FOREX market provides much greater leverage, and for stock traders, who must post at least 50% margin, there’s no comparison. If you’re looking for an efficient use of trading, trade the Forex Market.

  • Price Movements might be Highly Predictable.

Currency prices in the FX market generally repeat themselves in relatively predictable cycles, creating trends. The strong trends that foreign currencies develop are a significant advantage for traders who use the "technical" methods and strategies.

 Unlike stocks, currencies have the tendency to develop strong trends. Over 80% of volume is speculative in nature and, as a result, the market frequently overshoots and then corrects itself. As a technically-trained trader, you can easily identify new trends and breakouts, to enter and exit positions.

  • YOU only pay a small commission or fee to trade FOREX

When you trade FOREX, through Hydra Markets you can have two choices of trading account.

ECN – You trade a tight spread and also pay a commission
Standard – The commission is included in the spread.

Hydra Markets requires a very low minimum amount to open a brokerage account, only $100 USD or equivalent. To open a live account please click on the following link-

  • YOU don't have to pay trading fees or exchange fees.

There are none of the usual fees, which futures and equity traders are accustomed to pay:

NO exchange or clearing fees,

NO NFA or SEC fees.

Because currencies trade over-the-counter (OTC), via a global electronic network, in FOREX, what you see on your trading screen, is what you get, allowing you to make quick decisions on your trades without having to worry or account for fees that may affect your profit/loss or slippage.

In the equity and commodity markets, you must pay both a commission and exchange fees. The over-the-counter structure of the FX market eliminates exchange and clearing fees, which in turn lowers transaction costs.

  • Market Transparency.

Market transparency is highly desired in any trading environment. The greater the market transparency, the more efficient the market becomes. Unlike other markets where transparency is compromised (like in the many recent scandals), FOREX markets are highly transparent (i.e., analyzing countries, and having access to real-time research / news, is easier than analyzing companies).

As Hydra Markets is an ECN broker and also because of this transparency, as an FX trader, you will be able to apply risk management strategies in accordance to your fundamental and technical indicators.

  • Instantaneous Order Execution

The FX market offers the highest level of market transparency out of all the financial markets. Because of this, order execution and fill confirmation usually occur in just 1-2 seconds.

In Forex, order execution is all-electronic and because you'll be trading via an Internet-based platform, instantaneous execution is routine.

There are no exchanges, no traditional open-outcry pits, no floor brokers, and consequently, no delays. (Will be continued)...

Risk Warning:
The speculation of both leveraged foreign exchange (FX) and Contracts For Difference (CFDs) products is undertaken in order to potentially earn a profit from the price difference between the opening and closing of the transaction. Because leverage can work either in favour of or against the investor, FX and CFD transactions carry an extreme level of risk. For these reasons, FX and CFD trading may not be suitable for all investors as it is possible to lose a partial or full amount of the invested capital. You should only trade with capital that you are willing to lose. In addition, before making any trading decisions, it is highly suggested that you review the associated risks while taking into account your investment objects and level of experience. Past trading performance is not a reliable indicator of future performance. If you have any doubts, seek independent advice from a financial advisor.

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