Forex market seems to be one of the hottest markets these days. It takes just a small amount of capital to get going and you get leverage with it. This is important because a lot of people entering the market are looking for ways to make money and not just to invest their spare cash. Leverage means that you can use other people’s money to make your investment bigger. At the same time this also introduces greater chance for Loss. To avoid losses, you have to keep track of the great potential and positive aspects of Forex trading.

Liquidity : Forex is the largest financial market in the world, with the equivalent of over $3-4 trillion changing hands daily whereas traded volume on the stock markets equates to only 500 billion US dollars.

Flexibility : Forex is a 24-hour market, which offers a major advantage over other markets, for example, stock exchanges which are only open during regional business hours. You can respond to breaking news immediately if the situation requires it and customise your trading schedule.

Margin : In case of 1:100 leverage you need to support a deposit of 1,000 US dollars to make a deal with $100,000. Such high leverage combined with rapid rate fluctuations can make this market profitable but at the same time risky.
Less Charges : Traditionally there are no commissions or charges on Forex, except for the spread.