FOREX
VS OTHER MARKETS
Forex vs. Equities and Futures
The trading of foreign exchange provides significant advantages
over equities trading and futures trading. In addition to these
advantages, the seamless 24 hour nature of the Forex market
gives the trader a unique advantages of reacting to news and
worldwide developments instantaneously, participating in real-time,
in the largest trading market in the world.
| |
Forex
Trading |
Equities
Trading |
Futures
Trading |
| Leverage |
Upto
400:1 |
2:1 |
15:1 |
| Liquidity |
Volume:
$1.5 Trillion Aprox. |
Limited
Liquidity |
Limited
Liquidity |
| Commissions |
Lowest
Commissions |
Commissions
and Exchange Fees |
Commissions
and Exchange Fees |
| Trading
Hours |
24
Hour Market |
7
Hours with
Limited After Hours |
7 Hours with
Limited After Hours
|
Ability
to Benefit in Rising or Declining Markets
Unlike equity and fixed income managers, a Forex trader is able
to benefit under any market conditions by either buying or selling
a particular currency in relationship to another. In the Forex
market there will always be one currency strengthening against
another, unlike stock shares that move only up or down.
Global
Diversification
The performance of equity and fixed income investments in one
country is quite often, highly correlated with the performance
of equity and fixed income investments in other countries. Global
portfolios composed solely of equity and fixed income investments
lack full diversification, even if they are geographically dispersed.
Investing in currencies gives investors access to markets beyond
equity and fixed income investments, providing more complete diversification
and a reduction in portfolio risk.
