Why is the Spot Currency Market Attractive to Investors?
Professional investors for
individual accounts have dramatically increased their level of
participation in the cash Forex markets in recent years. Add to this the
growing use of cash Forex by individual investors and you have a rapidly
growing investment arena. The following summarizes the many reasons
professional investors have flocked to this market.
This market can absorb trading volumes and per trade
sizes that dwarf the capacity of any other market. On the simplest
level, liquidity is a powerful attraction to any investor as it suggests
the freedom to open or close positions at or near your requested prices.
A substantial attraction for participants in the Forex market is the
24-hour nature of the market. In Forex, a participant need not wait to
react to a news event, as is the case in most markets.
Many professional investment managers have a
particular time horizon in mind when they establish a position. In the
Forex market, a position can be established for a specific period of
time which the investor desires.