Advantages of Forex

Although the Forex market is by far the largest and most
liquid in the world, day traders have up to now focused
on seeking profits in mainly stock and futures markets.
This is mainly due to the restrictive nature of
bank-offered Forex trading services.
Unlike others, NorthFinance offers both online and
traditional phone Forex trading services to all
investors, with minimum account opening values starting
at 100 USD.
There are many advantages to trading spot Forex as
opposed to trading stocks and futures.
In the peoples mind there is this opinion that brokerage
firms and analysis’s can change the flow of the
currency. But in reality, FOREX is an independent
international foreign exchange market which can be
influenced by many factors but NOT by the wants(wills)
of traders and brokerage firms.
Because of its diversity you are able to trade FOREX 5
days a week, 24 hours a day. US, Europe and Asia the
major trading sessions enable you to trade on your own
schedule and make a quick respond to breaking news from
all continents of the world no matter where you are
located.
Complied benefits from both high leverage and potential
profits from both rising and falling market, Forex is
very interesting for speculators from every point of
view.
For example, with $10,000 cash in a standard account
that allows 1:100 leverage (1%), you can control up to
$1,000,000 in notional value.
NorthFinance charges NO commissions or fees, simply take
all your profits with you. Commission-free trading is
one of the most attractive features of NF. The dealing
spreads are as low as 2 pips(for EUR/USD). Providing a
more comfortable environment when trading. Versatility
all around
The overall volume of FOREX market is $2 trillion.
Almost all the amount of the volume involves trading of
the major currency pairs, NorthFinance clients enjoy
tight spreads on these pairs.
NorthFinance clients have the ability to trade in both
directions, compared to other equity markets where it is
more difficult to make certain trades. This gives an
advantage to all our clients.
It is simple to open an account, you can do it on-line
within 10 minutes. With multiple means of
funding/withdrawing you can start trading within one
hour. Access your trading account from anywhere in the
world. Our company serves clients, from over 150
countries and with a large network of world wide located
offices and representatives it makes contact us easy.
Trader Y opened an account of USD 50'000.
He buys EUR/USD 500'000 @ 1.3500 at the market and
places a stop loss order at 1.3460.
This point shows that his maximum risk is USD 2'000 and
his margin utilization is 10%, well above the minimum.
During the trading day the Forex market fluctuates and
initially moves down to 1.3480.
At this point trader Y has an unrealized loss of USD
1'000 and his margin utilization has fallen to 98%
reflecting the effect of the downward move on his margin
capacity.
Later the price moves back up to 1.3600 and trader Y
decides to take profit.
He sells at 1.3600 making a USD 5'000 profit which
represents a 10% return on his account value.
Note that trader Y took only a risk of USD 2'000 and
made a return of USD 5'000 this equates to a risk/reward
ratio of 2.5. A high risk reward ratio is what every
trader should be aiming for.
Please note that the example above is arandom case and
in no way is meant to illustrate that the potential for
profit is always greater than the potential for loss in
foreign exchange trading.