Forex markets have some special features that offer unparalleled potential for profitable currency trading in any market situation. Traders don't have to wait for the 'opening bell' like in the case of traditional exchanges and can take advantage of favorable market conditions at any time. The Foreign Exchange market is highly liquid, allowing traders to enter or exit positions at their discretion, regardless of the market conditions.
Compared to equity markets, Forex markets offer a high leverage ratio. While high leverage can lead to significant profits, it also exposes traders to higher risks of losses. Under normal market conditions, the bid/ask spread is typically less than 0.1% (10 pips). However, in fast-moving markets, the spread can widen significantly, especially for larger dealers.
A bear market or a bull market in Forex is determined by the positive or negative outlook on the future value of a currency against other currencies. If the outlook is positive, it indicates a bull market for that currency, where traders would prefer to buy it against other currencies. Conversely, if the outlook is negative, it indicates a bull market for the other currencies against that currency, which would require traders to sell it against other currencies. This means that the Forex market always provides trading opportunities in both bull and bear markets.
Telephones and electronic networks facilitate communication and trading between the global network of Forex traders and their clients. Unlike equity markets, there is no organized exchange to facilitate transactions in the Foreign Exchange market. The Forex market is so large and has numerous participants that it is not possible for a single trader or even a central bank to manipulate market prices for an extended period. Even interventions by powerful central banks tend to have limited and short-lived effects. Therefore, central banks are becoming less interested in interfering to manipulate market prices.
While banking laws regulate the activities of major dealers like commercial banks in money canters, the Foreign Exchange market is known to be an unregulated market. There is no specific law governing the daily operations of retail Forex brokerages, and many such institutions in the world do not even report to the Internal Revenue Service. At SiegFund, we cooperate with retail brokers under strict regulations, most of them hold license in FSC and ASIC, and we authorized by PE firm recruit profitable traders to use a private funds.
Beginner
Beginner
Beginner
