The foreign exchange market (FOREX) has several advantages over the futures market. FOREX is a more liquid market ? as the largest financial market in the world it dwarfs the futures market in daily exchanges. This means that stop orders can be executed more easily and with less slippage in the FOREX.The FOREX is open 24 hours a day, 5 days a week. Most futures exchanges are open 7 hours a day. This makes FOREX more liquid and allows FOREX traders to take advantage of trading opportunities as they arise rather than waiting for the market to open.FOREX transactions are commission-free. Brokers earn money by setting a spread ? the difference between what a currency can be bought at and what it can be sold at. In contrast, traders must pay a commission or brokerage fee for each futures transaction they enter into.Because of the high volume of trading FOREX transactions are almost instantly executed. This minimizes slippage and increases price certainty. Brokers in the futures market often quote prices reflecting the last trade ? not necessarily the price of your transaction.The FOREX is less risky than the futures market because of built-in safeguards in the trading system. Debits in futures are always a possiblility because of market gap and slippage.
1
Monday, October 02, 2006
FOREX
Thanks for visiting my blog, subscribe to my RSS feed. Thanks for visiting! |
Posted by Anonymous at 12:51 PM
Subscribe to:
Post Comments (Atom)
No comments:
Post a Comment