It refers to currency exchange where difference in currency value helps to make profits. This is termed to be a huge market as the traded values are much higher when compared to equities. Previously, only corporations and large banks were involved in currency trading. But advancements made in technology have made it possible for retail investors to enter this domain as it is a wonderful and attractive investment avenue.
ALPHA CAPITAL provides financial services in BSE. We share our expertise and experience with all our clients and undertake adequate researches to provide authentic information to help our clients to exchange foreign currencies with great confidence and at low brokerage charges.
Why Should You Invest in Currencies?
Being open 24 hours a day, the currency market does have huge volumes of liquidity. It is found resilient to the factors that affect the stock market. Therefore, it proves to be an effective way to expand the investment portfolio. But, currency trading is prone to risks, and hence, will require thorough risk benefit analysis and careful planning. Some benefits offered by currency trading are as follows:
- Round the clock trading :Transactions can be done at any point of time since this market is open 24/7.
- Leverage: Currency futures trading involve leverage usage through broker maintained margin. Therefore, it becomes easier to execute large transactions using less cash amount in hand
- Low costs: Due to low spread levels, the transactions invite lesser brokerage fees, thereby reducing effectively trading related expenses.
- Higher liquidity: With large transactions taking place almost every day, higher liquidity level is offered by the currency market. With great ease, you can exit and enter the market as desired.