dimanche 25 septembre 2011

Forex vs Future


Forex versus Futures Advantages Advantage Forex Futures 24-hour trading YES NO Commission free trade YES NO Leverage up to 400:1 YES NO Price Certainty YES NO YES NO Risk Guarantee
Hey Mr. Futures, are not our shorts look cool?

Liquidity
Spot forex market, almost $ 2 trillion traded each day, making the market's largest and most liquid in the world. This market can absorb the volume of trades and trade sizes that reduce the ability of any other market. Trade a futures market for $ 30 billion a puny jour.Trente billion? Peanuts! Futures markets can not compete with its limited liquidity. The Forex market is always liquid, meaning positions can be liquidated and stop orders executed without slippage except in extremely volatile market conditions. MARKET 24 HOURS
At 2:15 pm EST Sunday, trading begins as markets open in Sydney and Singapore. At 7 pm EST the Tokyo market opens, followed by London at 2 pm EST. Finally, New York opens at 8 pm EST and ends at 5 pm EST. So, before New York trading firm in Sydney and Singapore are back open - is a transparent market 24 hours! As a trader, this allows you to react to favorable or unfavorable news by trading immediately. If important data comes from England or Japan while the U.S. futures market is closed, the opening of the next day could be a wild ride. (Night markets in futures contracts on currencies exist, but they are thinly traded, not very liquid, and it is difficult for the average investor to access). Commission free trade
You know what's great about trading currencies? You pay no commission! Because you deal directly with the market maker via a purely electronic online exchange, you eliminate the cost of tickets and brokerage intermediary. There is still a cost to start a business, but this cost is reflected in the bid / ask spread that is also present in futures or equities trading. Brokers are compensated for their services through the bid-ask spread rather than through commissions. Price Certainty
When trading Forex, you get fast execution and certainty of price in normal market conditions. However, futures markets and the actions do not offer price certainty or instant trade execution. Even with the advent of electronic commerce and limited guarantees of execution speed, the prices of futures contracts to fulfill and actions on market orders are far from certain. The prices offered by brookers often represent the last trade, not necessarily the price at which the contract will be fulfilled. Guaranteed Limit brawl
Traders must have position limits for risk management. This number is fixed in relation to the money in the account of the operator. The risk is minimized in the spot foreign exchange market because the online capabilities of the trading platform will automatically generate a margin call if the required amount of coverage exceeds the available trading capital in your account. All open positions will be closed immediately, regardless of size or nature of positions held in the account. The futures market, your position may be liquidated at a loss and you will be responsible for any shortfall in the compte.That sucks.

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