Foreign exchange is a global market that is incredibly liquid with enormous trading volume.
Before jumping in forex trading, there are various unique advantages of forex trading over other financial markets that every trader must know.Top 11 Advantages of Forex TradingHere in this article, we are going to focus on some unique advantages of forex trading.1.High LiquidityThe foreign exchange market is the most liquid market in the whole world.
In the world of finance and high forex, liquidity indicates the easier movement of money in and out with little price difference in buy and sell prices.
But this could turn into a great disadvantage as well because the price movement can happen on any side.
Here are some currency pairs which are more popular than others.Minor Pairs: SGD/JPY, USD/ZAR, and CAD/CHFMajor Currency Pairs: EUR/USD, GBP/USD, and USD/JPYExotic Pairs: TRY/JPY, EUR/CZK, and USD/MXNEmerging Currency Pairs: EUR/RUB, USD/CNH, and AUD/CNHYou can trade in all these currency pairs with a trading account.4.24/5 AvailabilityTrading in the forex market is a continuous process because it is a global market, and if a market closes in one country then somewhere in the world a new market opens in another country.
Spread is the difference between the asking price and bid price.For example, in a forex trade selling price is 1.3428 and buying price is 1.3427, then the spread for this transaction is one pip.Some brokers also charge a commission on the transaction.