The benefits of forex trading are:
1. It is conducted in an extremely liquid market. Thus, you are unlikely to get stuck in a trade. You can open and close any position at your desired level.
2. Traders can benefit in both rising and falling markets. You can take a short position (selling the currency pair and buying it back at a lower price) or long position (buying the currency pair and selling it later at a higher price).
3. Provides traders the option of trading in small lots. If you are a novice trader, you can opt to open small accounts and start trading with small lots. This allows you to begin with little capital and limit your risks.
4. Traders do not have to pay commissions to brokers. The cost of the transactions is built into the currency price and is known as the spread, which is the difference between thebuying and selling price at any given time.
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