LEVERAGE
High leverage is easily available, with Mandus Invest offering
1-3% margin, which substantially exceeds the common 50% margin
offered by equity brokers, and 6-7% in the futures market.
While this leverage is not
appropriate for everyone, it can be a powerful, moneymaking tool.
In a market where currencies rarely move more than 1% in a day,
leverage is used to make meaningful trading decisions.
Risk is magnified by leverage,
and it becomes essential to trade in a disciplined manner, consistently
utilising stop and limit orders. Emotion is the trader's biggest
enemy.
LOW TRANSACTIONS
COSTS
It is very cost-efficient to trade FX in terms of spreads, commissions
and other transaction fees. Mandus Invest offers very low spreads,
and dealing with absolutely no fees or commissions. In addition
Mandus Invest provides free features like streaming prices, market
charts and news.
PROFIT IN BOTH RISING
AND FALLING MARKETS
In every open forex position, an investor is long in one currency
and short the other. A short position is one in which the trader
sells the base currency in anticipation that it will depreciate.
This means that profit potential exists in a rising as well as
a falling market. See here for more information about the benefits
of alternative investments.
THE ABILITY TO SELL
CURRENCIES WITHOUT ANY LIMITATIONS
In the US equity markets, it is often difficult to take a short
position due to the Zero Uptick rule, which prevents investors
from shorting a stock unless the immediately preceding trade was
equal to or lower than the price of the short sale.
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