The Forex market has quickly become the world's largest financial market, with an estimate daily turnover of $3.2 trillion. It is a market that has great appeal to a financial trader because of its volume which guarantees liquidity. High liquidity means that a trader can trade whatever currencies he feels like at all times, since there will always be someone to buy and sell any currency he wants. Another outstanding feature of the forex market is that it is active 24 hours a day and is closed only on the weekends. This means that unlike the stock market for example, traders in the forex market don't need to wait for a bell to ring, but can make trading decisions around the clock.
Enter the internet into the equation. Now the forex market is literally at your fingertips. Most brokers offer online trading facilities which enable you to trade simply by clicking a button, instead of the traditional phone call. The internet has really revolutionized the industry, making the retail section of the market more dominant than ever.
The financial world is now going through some turbulent times. The global economic crisis has affected markets and economies worldwide and has rendered the financial markets unstable. The crisis has deepened recently due to negative investor sentiment. In these critical conditions most investors are pulling their money out of the falling stock markets and looking for available alternatives for investment.
Many investors have found this alternative in the forex market. Unlike other financial markets the forex market literally cannot crash. This is due to the fact that in the forex market one invests in a currency's value relatively to another currency. One is always buying and selling at the same time. Therefore one can profit when one currency weakens against another just as much as if it were strengthening against the same currency. In fact, the instability that the global crisis has introduced into the market is considered by many to be a positive thing. Volatility in the forex market, despite perhaps making it more risky, also provides greater opportunities for profit. The sharper the swings the currencies go through against each other, the more forex traders stand to profit.
And because this volatility makes the trades riskier, forex dealers also provide traders with tools to reduce their risk. Stop Loss orders are a very commonly used tool in forex traders, because they allow traders to limit the amount they are risking while their profits remain potentially limitless. One does not even have to risk the entire amount of their investment. For example, if one invests $100 on a trade they can place a stop loss order that will close the trade in case the rate of the currency pair reaches a level that leaves only $50 to take back. This allows traders to protect themselves from unpredictable market movements while simultaneously allowing them to take advantage of this same market volatility.
Despite these obvious advantages, some people still hesitate to start trading forex since they've never tried it before. This is where the eToro platform comes in. The eToro forex trading platform is a perfect place to get started in the forex market because eToro provides you with all the advantages of forex trading incorporated into a simple and visual interface. eToro's revolutionary trade visualization make it easy for forex novices to acquire trading skills in no time.
Now, more than ever, it's time to give forex trading a shot. Download the eToro platform for FREE today to get started!