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Reasons for Popularity of Forex Trading

There are main three reasons for which Forex trading has topped the list of popularity. There is no denying the fact that Forex trading is the most powerful vehicle of getting huge financial stability by earning huge amount of money. It is not a jabberwocky statement but it is very serious business.

With the expansion of the globalization, there is no barrier or onus on the expansion of the Forex trading. With the support of the technological advancement Forex trading is conducted in most countries. It has opened new vista to those young guys and gals who want to gain huge amount of money within short span of time by small investment.

Now there is the first reason for which Forex trading has climbed the ladder of fame and reputation. The first reason lies in the easy accessibility and convenience of doing trading in Forex market. It is 24 hours open.

There are most Forex trading centers which offer free quotes, charts including updated new bulletins. There is well arrangement of demo Forex account as well. Second reason lies in the cheap and less expensive trading. Brokers never charge commission fees. Forex trading company and the broker are paid through the option of pip spread.

A EUR/USD pip spread is 3 pips which amount to $30. The investor prefers the leverage of $100,000 of EUR/USD at the total transaction expenditure of $30. Third reason is the least risk of pecuniary crunch. Most of trading platforms don’t permit trading the minute the Forex account equity amount makes a nosedive below the margin level.
The Forex trading platforms that provide service will make the liquidation of the currency position prior to the movement of the account to the negative position.

Lastly Forex trading provides huge leverage up to 100 times the value of the trading account which can invoke major financial loss within short span of time.

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Added: Monday, March 2, 2009

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