Advantages of the forex market over other stock markets

Advantages of the forex market over other stock markets  

High liquidity  High liquidity
When you want to sell a share, you must find a buyer for it, and when you want to sell a commodity, there must be someone who wants to buy from you .

In some circumstances, when news occurs that causes a sharp drop in the shares you own , all those who own the shares that you have also want to sell them, so the supply of shares becomes much more than the demand for them, and this causes a massive drop in the share price and at an extraordinary speed, so in some circumstances you may find great difficulty In selling your shares at an appropriate price, you may even have to sell your shares at a big loss when you do not find anyone who wants to buy them .

This is called liquidity liquidity of any ability to convert holdings of securities financial to the money and this also applies to the commodity commodities in conditions of significant economic and political changes .

As for the currency market, because of the magnitude of this market, which is, as we mentioned, the largest market in the world, you are always able to sell your currencies at the time you see fit, and you will always find someone who buys from you before it is too late, and this is an advantage that reduces the risk that you may face in other financial markets . Market fairness and transparency of the Fair and Transparency is the currency market is the fairest market in the world .. !! Why ? Because it is a very huge market, it is not possible for a limited group or any party to influence it easily . For example , if you compare the stock market , if you own shares in a company once a simple statement from one of these officials , the company is liable to affect the stock price , which is owned by down or up .

As for the currency market, and because it is a huge market, no individual or entity can influence it , and currency prices are not affected except by huge economic movements estimated in billions, and they are affected only by official government data not from any country but from the largest economic countries such as the United States, Japan or European Union . Or the statements of the finance ministers and central banks of these countries . This avoids the manipulative “movements” that small stockholders often suffer from , carried out by corporate officials and large stockholders who may – we say may – have a personal interest in raising or lowering stock prices, and many of these stories have occurred even in the shares of international companies. Despite the stringent procedures and oversight .

The magnitude of the currency market and the fact that it is only affected by the official statements of the largest economic countries in the world and by the official officials of these countries makes the currency market the most transparent, there are no secrets or manipulation .

This avoids traders in the currency market, many of the “hidden” pitfalls that traders may encounter in other markets .
Take advantage of the bull market and the bear market .

As we mentioned, it is possible in principle to trade and obtain profit in a commodity, whether the market is rising or falling .

Despite that, most of the stock market dealers, for example, do not trade except in the bull market .

What does that mean ?

It means that the majority of stock dealers are looking for shares whose prices they expect to rise in the near future in order to buy these shares in the hope of selling them at a higher price, but when they know that the shares of a company will decline, they do not take advantage of that and do not sell these shares to buy them again at a lower price. of the sale price and keep the difference between the two prices as a profit .

Why ?

Because trading in the bear market in shares is characterized by complexity and many restrictions, which makes it a dangerous field , because countries and stock exchanges impose special regulations for trading in the bear market in shares for fear that corporate officials or those who have an interest will deliberately reduce stock prices for their own benefit, so there are many restrictions that make Trading in stocks in the bear market is a complex issue that only professionals and people with extensive knowledge deal in. Also in the commodity markets, although you can trade and get a profit when you expect that the price of a commodity will fall, in practice most of the dealers in commodity markets also tend to work In the rising market, that is, they are looking only for commodities whose prices they believe will rise, while in the declining market for commodities, few are dealing with them .

Because the goods often are traded in a special way called derivatives derivatives as mentioned a method that is difficult to explain here make trading market bearish are highly dangerous and it does not deal only by experienced and potential high and know – how, the vast majority of traders from ordinary people , they and the principle of safety They only deal in a bull market .

As for currencies, it is different, as the bull market and the bear market are the same ..!!

Everyone can trade in a currency, whether it is expected that its price will rise or fall without increasing the risk or reducing the returns, but the matter is the same in both cases .

Why ?

If you want the explanation, it is because currencies are bought and sold as pairs, not individually .

When you pay the dollar and buy the Japanese yen, it means that you sold the dollar and bought the yen, and when you pay the yen and buy the dollar, you practically sell the yen and buy the dollar .

What matters to us is that you understand now that in the currency market, unlike other markets, you can trade in the bear market, just like trading in the bull market, which gives you high flexibility and much greater opportunities to trade and get profits .

It is another advantage of the currency market over the rest of the other markets .
I hope the picture is healthy now for everyone