Deciding whether to trade Forex or stocks should depend on the asset you are interested in (currencies or stocks). There are, however, several reasons why investors prefer to trade in Forex rather than stocks: • Market Hours: The stock market is limited to stock market hours, while the foreign exchange market However, it should be noted that some of the stock indices are also available during the weekend trade. • Higher liquidity: The Forex market transacts more than $ 5 trillion per day, while the stock market does fewer transactions per day. • High volatility: Equity markets tend to have more stable prices that change over a longer period. Although good for some trading styles, the volatility of the forex market can offer short-term investors a wide range of exciting opportunities. To decide whether to opt for Forex or stock trading, you should consider your attitude to risk and your financial goals
Access tools that help you with your work
IG offers a range of trading platforms on the web, on mobile devices or tablets, as well as specialized platforms for investors who want to take their trading experience to the next level. You can access a number of features designed to improve your operations, including risk management tools (such as stops and limits), interactive graphics, and built-in messages. • We also offer a range of products to enhance your forex trading: Academia IGcontiene Clear and Interesting Forex Trading Prices Designed for Less Experienced Investors • With our free demo account, you can get risk-free access to virtual funds worth € 20,000. So you can try to trade Forex and our technology without putting your money at risk Forex Hedging Strategy A hedging strategy is a technique that can reduce the risk of unwanted movements in the forex market by opening multiple strategic positions. Although volatility is in part the exciting thing in the foreign exchange markets, a hedging strategy can be a good way to reduce or limit losses to a certain amount. There are a variety of strategies you can use to cover your forex positions.
Most often, however, a hedging strategy is created for multiple currency pairs. You can limit the risk of losses to which you are exposed by opting for positively correlated currency pairs such as GBP / USD and EUR / USD and open positions in opposite directions. For example, a loss of a short position in the EUR / USD pair could be mitigated by a long position in the GBP / USD pair.
Trade with a variety of currency pairs
Forex trading allows you to trade with a variety of currency pairs, investing in international events and the perceived strength of big and small economies. For example, with IG, you can choose from more than 90 currency pairs, including: • Major currency pairs such as GBP / USD, EUR / USD and USD / JPY • Secondary currency pairs such as USD / ZAR, SGB / JPY and CAD / CHF • Emerging pairs such as USD / CNH, EUR / RUB and AUD / CNH. • Exotic couples like EUR / CZK, TRY / JPY and USD / MXN within the same session.