Showing posts with label stock market. Show all posts
Showing posts with label stock market. Show all posts

Wednesday, January 7, 2009

Advantageous Features of the Forex Market

Fees associated with Forex Trading: Due to the fact that the forex market is decentralized - there are no exchange or clearing fees involved. There are no government fees or brokerage commissions. Forex brokers make their money through the spread - so when evaluating a broker, you should consider how tight a spread they offer.
No fixed lot size: Unlike other markets, the flexibility of lot size allows participation in forex trading with a very small account size (sometimes as low as $......).
High Volume and Liquidity: The electronic marketplace offers almost instantaneous transactions and the volume traded is greater than all the stocks and futures markets combined - over $1.9 trillion.
Around the clock access: Unlike the stock market, the forex trader is able to get in or out of a position at any time, day or night.
Highest leverage available in any market: Most online brokers offer 100 to 200 times leverage.
No Uptick Rule: Unlike the stock market, where traders cannot short a stock in a downtrend without an uptick - a forex trader can short a currency pair whenever they want.
Insider Trading: Due to the sheer size of the forex market, insider trading and other manipulations (such as an attempt to corner a market) are far harder to achieve than in other arenas.
Bull/Bear Market: In the stock market, the majority of investors are long and suffer in a bear market. However, in the forex market, due to the fact that if you are long one currency, you must be short another - there is an equal opportunity for profit whether a market is rising or falling.

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