If you speak about above question then hypothetically the answer will be yes. You can make quick bucks in currency trading if you are a hedge fund, big investor, or a highly skilled currency trader, while the average retail trader, without gaining expertise or knowledge, can subsequently result into heavy losses. But in general, the answer will be “Yes”, there are many millionaires out there who have made a quick fortune in currency trading.
Let’s highlight some of the biggest names in the FOREX industry: Larry Williams, George Soros, Warren Buffett, Richard Dennis, etc. In fact the only trait with these people was patience and ability to take risk and (yes there were highly skilled traders…!). But this inhibits that quality traits don’t make you rich in the FOREX trading, there are various factors that contributes the healthy way to promote; “Get Rich Quick Scheme”[dt_gap height=”20″ /]
Even though the currency market is highly volatile in nature but the volatility meter can only work for you to make a profit in the currency market. Apart from this leverage plays an important factor in your trading needs. Let’s have a look, how the leverage makes magic in your trading style:
For Instance, if you buy the currency pair “EUR/USD” with a major change in EUR from 1.35 to 1.17 with a change of more 30% in intraday contract, while in the stock trading the trade can only have a volatility of 20% with no leverage. Hence, it sometimes allures the FOREX traders to trade in currency market as it gives them the opportunity to choose their own leverage. Hence, the potential profit can extend up to several thousands dollars by just investing few dollars. Most of the FOREX brokers provide a leverage up to 1: 500
Hence, it can be perfectly said that “Miracles do happen, if we believe in them”; that’s why FOREX trading is one of the most preferred choice among the traders.
With regard to any kind of trading or investment you undertake, whether it’s Stocks, Bonds, Debentures, Fixed Incomes (FI) products or MF, it has to be carried out via Regulatory Exchange which also defines a low profit, high taxes evasion schemes, fund manipulation, etc. In regulatory markets, there are high chances of tax fraud hence, for the retail investors it’s a big ‘no-no’. If they want to make big profits, then they should choose the alternative or different avenue which co-relates to OTC Market.[dt_gap height=”20″ /]
Did you know?[dt_gap height=”20″ /]
After 2012, more than 60% of revenue of Goldman Sachs comes from the OTC trading (Factopedia)
However, sometimes OTC trading gives a rise to the counterparty risk hence it is always better to clarify the financial health of a company or you must foresee the industry trend before getting involved in OTC trading.
The FOREX market is highly volatile in nature. Hence a minor shift can go against or with your traders. Hence bearing in mind that the currency trading allows you to choose your T/P (Take Profit) or S/L (stop Loss); that helps you to control your risk and allows you to make profit. With such customisable trading options we can say “Destiny is in your Hands” that similarly goes to the FOREX trading as everything is in your hands preferably called as “NDD” .The high volatility leads to high profit or high loss.
Hence, The FOREX traders always check the volatility in the market and place their order accordingly.
The main beauty of FOREX trading is that it is easily accessible anytime a day anywhere around the world. The FOREX is opened throughout a day. Hence the traders need not to go all the lengthy procedure of trading nor need them to go to any stock exchange to get the quotations of a particular Stock. Due to availability in various avenue of trading platform such as web, mobile, MAC, etc. They can get the live quotes anywhere and hence they can also place their trading order from anywhere and at any time.
Along with the convenience, various FOREX dealers also provide their clients with variety of products like Commodities, Metals, Energy, Indices, Stocks, T-Bonds, etc.
Hence, with this perfect 4 features we can say “Yes, FOREX trading does provide you with valuable gains” and helps you to accumulate the wealth.