Why We Can Trade Currencies

Why We Can Trade Currencies

The foreign exchange market aids international investments and trade by facilitating currency conversion. It allows European Union member states to export goods to businesses in the United States. 

The benefit is that they can pay in Euros despite their income being in U.S. dollars. 

It enables direct evaluation and speculation according to trade speculation and currency value. It is centred on the interest rate differential between the two currencies.

The high currency trade volume makes the price fluctuations of many currencies volatile. This means you can earn huge profits by taking risks on upward or downward movements. 

Volatility can be dangerous; market conditions may not always favour you. So reduce your exposure by using risk management tools. 

Flexibility is another exciting feature of Forex trading. The foreign exchange market is available 24-hours during the weekdays. You can trade Forex from 9pm on Sundays to 10pm on Fridays (GMT).

The long hours are due to the involved parties closing deals over the counter (OTC). This system is preferable to using a central exchange.  

Forex’s status as a global market means you can leverage several active sessions.

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