Why Trade Derivatives?
Why Trade Derivatives?
The world today encompasses a great number of different financial markets, and the exponential growth in technological advancements have made accessing each of these markets a reality. All you need is an internet connection and a computer. It is precisely these numerous choices of financial markets and their general ease of accessibility that create a double-edged sword when it comes to deciding what to trade on—it is often difficult to settle on a specific method of trading or even a single financial market to trade on. This is where FX Derivatives trading comes in.
As we have learnt,FX Derivatives allows traders from all walks of life and work schedules to enter the financial markets in a straightforward and time-efficient manner. Fort understands just how powerful FX Derivatives trading can be in today’s ever-changing markets, which is why we seek to provide for you a trading vehicle that presents many big pluses in comparison to traditional forex trading. Let us take a look at why trading FX Derivatives will be advantageous for you as a trader:
Simplicity
This is where FX Derivatives really shines. When you trade FX Derivatives, you will only have to worry about one single thing: whether the price of your asset will go up or down upon expiry. The trader is, on a fundamental level, making a prediction within a narrow range of pre-determined conditions. You are at liberty to decide how much you want to invest and when the trade ends by determining an expiry date. This is not the case when you, for example, trade on forex, where a control of your losses can only be achieved using a stop loss. When you trade FX Derivatives, however, you will only have to worry about the trade parameters of investment amount, expiry time and direction, all of which you will have set even before you begin the trade.
Multiple Options
With FX Derivatives trading, you are not limited to a single market. You are able to trade forex, indices and commodities, all within the same trading vehicle. This means you will be able to adapt different trading strategies based on the present market conditions. The flexibility you are afforded with FX Derivatives trading is unrivalled in comparison to other financial markets. Add in the wide berth of trading strategies available in this very website, and you will find yourself in a very advantageous position as a trader.
Controlled Risk
Unlike other forms of traditional speculative trading, all your potential returns are known upfront when you tradeFX Derivatives. You will not lose more than your original capital in your trades. Additionally, you will have knowledge, as a trader, of exactly how much you are risking with each trade. There is no risk of leverage costing you more than the amount you have risked on the trade. In any givenFX Derivatives trade, Fort traders risk only the exact amount they input into our MT4 Derivatives platform—no more, no less.
Fast Returns and High Rewards
With most investments in traditional speculative trading, you may have to wait weeks, months or even years to start seeing high levels of profits. When you use Fort’s MT4 Derivatives platform, however, it is possible to see returns within as short a time frame as 60 seconds. Additionally, returns in FX Derivatives trading are typically higher than from other types of trading, with Fort traders being able to attain returns of up to 80%. This ability to trade in markets for short intervals combined with the potentially high returns means it will be possible for you to make substantial profits with a few quick successful trades.
Trade in Any Market Condition
One of the major limitations that traditional forms of financial trading has is that you are only able to make profits in a bull market, or when prices are rising. When it comes to FX Derivatives trading, however, you will be able to make returns even in a bear market, or when prices are falling. This is because with FX Derivatives, you are basing your trade on the direction of the price movement of your chosen asset. For the Fort trader, this opens up different trading strategies you can employ, thus providing you with a greater potential for profits to be made. By keeping an eye on the financial markets and observing any major fluctuations that arise, you will be able to maximize your investments.