Why work in the currency market? As you know, there are many types of commodities that can be traded, such as stocks, commodities, bonds, and many others. Each type of these commodities has its own stock exchange, where one chooses one or more of these types to trade in.
Why work in the currency market?
In direct exchange exchange work is done for a limited period every day, as the stock exchange opens in the morning and closes its doors in the evening.
For example: If you want to trade shares of American companies, you cannot buy or sell unless the New York Stock Exchange opens its doors at 9 am (EST) to 4 pm at the same time. This means that you are restricted to this time to monitor the market, which requires full time, and this applies to all other stock exchanges, each according to the timing of the country to which it belongs.
Why work in the currency market? If you work in an Arab country and want to trade in forex or shares on the New York Stock Exchange, you are restricted to work between 4 pm to 11 pm, which corresponds to the opening time of the New York Stock Exchange for most Arab countries. Such a difference in working times causes many problems and difficulties in the long run.
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In the currency exchange and because there is no specific central place, and because the operations are carried out by computer networks, work in the currency exchange does not stop throughout the 24 hours. except in the last two days of the week (Saturday and Sunday) …!!
Why work in the currency market? Banks and financial institutions open their doors in Japan at 12:00 GMT (8:00 am, Japan time), so buying and selling operations begin, and Japanese institutions do not close until 9:00 am GMT (5:00 pm, Japan time) …
But the work will not stop, because as soon as the Japanese and Asian institutions close, the most important of which are in Tokyo, Hong Kong and Singapore, the European institutions, the most important of which are in London, Frankfurt and Paris, have opened their doors.
And as soon as the European institutions close to closing, the American institutions will start working, the most important of which are in New York and Chicago…!!
Why work in the currency market? Depending on the time of each country, it will be for you to deal continuously throughout 24 hours. Except for Saturday and Sunday..because they are holidays in all countries.
High liquidity in forex trading
When you want to sell a stock, 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 decline in the shares that you own, all those who own the shares that you have like them want to sell them as well, so the supply of shares becomes much more than the demand for them, and this causes a huge drop in the price of the share at a breakneck speed, so in some circumstances you may find it very difficult In selling your shares at a reasonable price.
Why work in the currency market? You may have to sell your shares at a great loss when no one wants to buy them. This is called liquidity, that is, the ability to convert what you own from securities into money, and this also applies to commodities in conditions of important economic and political changes.
As for the currency market, the magnitude of this market 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 to buy from you before it is too late. This is an advantage that reduces the risk that you may face in other financial markets.