Monday, February 7, 2011

Business Benefits of the Forex Market

Business Benefits of the Forex Market

Forex Market become famous today. Build a lifestyle with, look at operating in the Foreign Exchange (Forex) market.  There are some of the characteristics of the Forex market that would affect the operation of a small business in that market. Cost of Entry and Operation, Transaction Costs, Risk Factors, Profit Potential, and the Summary.
A. Cost of Entry and Operation:
The modern day Forex market can actually be entered with as little as $200, one of the lowest requirements of any business.  Certainly there are advantages to starting with more capital, but almost any motivated person can get involved.
Another significant cost of operation for any business is …time.  The Forex markets are open 24 hours per day, allowing you to choose your own schedule. Especially nice if you’re already working at something else.  This freedom to schedule allows you to have a Forex business on your terms, where so many business activities require you to operate on someone else’s terms.  You can own your own business, your business doesn’t have to own you!

B. Transaction Costs:
A wonderful feature of the Forex market, especially for small business operator, is that there are NO commission charges.  YES I said NO commission charges.  While most markets charge for commissions in addition to a bid/ask spread, the Forex market only has the bid/ask spread, typically narrower than other markets. 

C. Risk Factors:
When operating your own small Forex business, you don’t need employees, or to  rent commercial space.  You can operate from anywhere you like as long as you have an internet connection.
For each transaction or trade your risk is limited to a small percentage of the trade called “margin”.  You cannot lose more than your margin and you’ll always know what that amount is upfront.

D. Profit Potential:
A small business person or “trader” has potential profits that can range from $200 to $3,000 per trade  Time to complete a trade can be measured in minutes to hours and might be repeated several times per week.
Markets move up and down.  The Forex market is structured so that you have an equal chance of profits regardless of which direction the market moves in. 
Leverage is available at up to 200:1.  Depending on your business plan, you may choose to use less leverage.
Forex tends to exhibit “trending” characteristics.  This  nicely lends itself to a technical and rules based approach which is reasonably learned.

E. Summary:
For ease of entry, low transaction costs, controllable risk, and profit potential, the Forex market compares more than favorably with the real estate, stock, commodities, or futures markets.  If you would like to operate a business that can be tailored to support your quality of life, the Forex business deserves your serious consideration.

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