• Forex investments represent a potentially large opportunity in world financial markets, with over US$6.6 trillion in trading volumes daily, to prove it is the largest market in the world, even bigger than the stock, bond, and commodity markets put together. The US dollar is a key player and is involved in approximately 88% of all forex transactions. The EUR/USD currency pair is the most actively traded, amounting to around 24% of the market. Algorithmic trading rules the developed markets, which constitute some 70% of forex volume.  

• On the other hand, retail traders comprise only about 5.5% of the trading volume in the FX market. High challenge confronts the individual trader, as over 50% lose and only about 15% prove profitable.  

• The forex market also tends to experience increased volatility during periods of economic instability. Normally, EUR/USD would move about 70 pips per day. London, in general, takes the lead in the trading arena worldwide at 43%. It is followed by Asia, which contributes more than 21%. In 2020, 83% of traders were highly inclined towards using forex trading platforms, reflecting their growing popularity. 

What is forex investments? 

• Forex investments are types of foreign exchange investments whereby traders trade different currencies across the forex market, which is a decentralized trading platform operating 24 hours a day for five days per week. This allows trades to cover various time zones. In forex trading, when one buys a currency, that means selling another. As such, transactions take place in currency pairs, say EUR/USD or USD/JPY, and similarly, the value of one is always pegged relative to another.  

• More importantly, forex trading allows for significant leverage, where a small amount of capital is leveraged against a very large position, thereby increasing potential gains just as it increases potential losses. Market volatility is driven by economic data, geopolitical events, and market sentiment, creating opportunities to trade off currency price fluctuations for traders. 

Benefits of forex investments 

Investing in forex offers several distinct benefits that attract traders from around the globe. Here are the main advantages: 

 Continuous market access 

• Forex investments benefit from the market’s 24-hour operation, five days a week, which allows traders to engage in trading activities at any time that fits their personal schedule. This continuous access enables investors to react promptly to global events and market changes, providing the flexibility to seize opportunities as they arise without waiting for traditional market hours. 

Exceptional liquidity 

• Probably the most important advantage of Forex investment is the unrivaled liquidity of the market over US$6.6 trillion per day. This high liquidity will ensure that any position can be opened and closed with far more ease, avoiding considerable price changes, thus lessening the potential for slippage and improving the efficiency and stability of trading. 

Leverage and capital efficiency 

• It provides huge leveraging, whereby traders can control larger magnitudes of positions with a limited size of capital. Such leverage can increase potential returns; one can earn more with less invested in the trade through leverage. But it is very critical to implement sound risk management practices to handle the increased risk. 

Profit potential in both market directions 

• One of the most significant advantages of Forex investments is that an investor can make money from both increasing and decreasing prices of currencies. They will want to take a long position by buying if they feel the currency is going to appreciate but want a short position to sell if they believe the currency will drop. This very advantage presents numerous options for realizing gains amid various movements and situations in the market. 

Accessible entry requirements 

• With low entry barriers to the market, there is a good number of brokers who require a very modest initial deposit, which will be enough to open a trading account. This therefore opens the opportunity for people of most walks of life to be able to afford investments in forex. Besides, free demo accounts are provided for beginners to try out their skills and build up real experience without losing any actual money. 

Cost-effective transactions 

• Most of the Forex investments have comparatively lower transaction costs than that of other financial markets. Since most brokers make their revenues on a spread basis rather than commissions, it keeps trading expenses lower and enhances cost efficiency, which may further maximize net profitability. 

Wide range of trading opportunities 

• The Forex market represents a rich variety of currency pairs, hence availing many trading opportunities to the investor and, in turn, diversifying their portfolio. Variety will enable traders to tailor their strategies to different market conditions and pursue a wide range of investment possibilities. 

Robust educational and community resources 

• Forex investment grants access to great amounts of educational resources, tools, and communities that considerably make it easier for a new and experienced trader to improve and fine-tune their trading skills and strategy.  

Step by step procedure for starting forex investments 

Step 1: Open your trading account 

• First and foremost, Thaurus will help you open a spread betting or CFD trading account, either live or demo. This will let you trade both ways on the price movements of forex pairs. Use our services for account opening with the right setup for your trading needs. 

Step 2: Conduct market research 

• Furthermore, our professionals are here to help you research and look for the FX pair that interests you in trading. Read our news and analysis section daily to stay current on market news that could have a bearing on forex pairs while keeping track of pivotal market-moving events in our market calendar. 

Step 3: Analyze and decide 

• Our experts will then help you decide whether to buy or sell based on your research. Will the base currency of this pair strengthen or weaken? If it is expected to strengthen, go long and ‘buy’. If it is expected to weaken, go short and ‘sell’. Use our currency converter and heatmap to help make your decision. 

Step 4: Execute your trade 

• When ready, execute the forex trade based on your defined strategy that includes clearly stated entry and exit points. Be sure to include your risk management conditions by setting a stop-loss limit or take-profit order, which can be set up through our platform tools. 

Step 5: Close and reflect on your trade 

• Finally, always exit based on your forecasts of the limits as established in your trade plan. Review your trades for lessons learned to improve with each trade. Our services will help you analyze your trades and adjust your strategy to be more successful in the future. 

Conclusion 

• Forex investments with Thaurus offer a great number of opportunities for traders looking for flexibility, liquidity, and profitability. With market accessibility for 24 hours a day, unparalleled liquidity, and high leverage potential, the possibility for reward is high. Thaurus improves this through robust opening of accounts, cost-effective conditions of trading, and rich educational resources.  

• Whether you want to take advantage of market movements or diversify your portfolio, Thaurus equips you for your trading journey with state of the art tools and professional guidance. Take the opportunity that the fast-paced Forex market offers at your fingertips and let Thaurus empower you to unlock your true potential in realizing your investment goals. 

• Contact us to know more about Forex investments and our team will revert in 24 hours.