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Why Invest In Forex?


Prissila

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Market Liquidity and Volatility

The forex market is the largest and most liquid of the financial markets.

 

Daily activity often exceeds $4 trillion USD a day, with over $1.5 trillion of that conducted in the form of spot trading.

 

Forex spot trades consist of a contract to trade a given amount of a currency pair derivative with a market-maker, at the advertised buy / sell price (the spot rate).

 

It is the existence of volatility within the forex market that enables trader's to take advantage of exchange rate fluctuations for speculative purposes.

 

Traders must be aware that greater volatility also means greater risk potential

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