Sunday, November 11, 2007

Forex VS Equities

Liquidity
The spot Forex market is a $1.9 trillion daily market, making it the largest and most liquid market in the world. This forex market can absorb trading volume and transaction sizes that dwarf the capacity of any other market. If you compare this to the $30 billion per day futures market it becomes clear that the futures markets provide only limited liquidity. The market is always liquid, meaning positions can be liquidated and stop orders executed without slippage.

24-Hour Market Action
Unlike most futures exchanges, the forex currency market is a seamless 24-hour market. At 2:15 PM Sunday, New York time, trading begins as markets open in Sydney and Singapore. At 7 PM the Tokyo market opens, followed by London at 2 AM, and finally New York at 8 AM. As a trader, this allows you to react to favorable or unfavorable news by trading immediately. If important data comes in from England or Japan while the U.S. futures market is closed, the next day's opening could be a wild ride. (Overnight markets in futures currency contracts exist, but they can only be thinly traded, are not very liquid and are difficult for the average investor to access).

Zero Commissions
In the forex currency market, you pay no commissions and no exchange fees. Because you deal directly with the market maker via a purely electronic online exchange, you eliminate both ticket costs and middleman brokerage fees. There is still a cost to initiating any trade, but that cost is reflected in the bid/ask spread that is also present in futures or equities trading. ForexCT.com offers tight, consistent spreads that remain the same at all times.

Execution Quality and Speed
The futures and equities market does not offer instant execution or price certainty. Even with electronic trading and limited guarantees of execution speed, the price for fills on market orders is far from certain. In the futures and equities market, the prices quoted by brokers often represent the last trade, not necessarily the price for which the contract will be filled. In contrast, when trading with ForexCT.com you get rapid execution and price certainty.

Benefits of Trading Forex on the Internet
Instantaneous trade execution and confirmation:
In the foreign exchange market,speed of execution is of utmost importance. The market moves quickley and can be made or lost, in seconds. As a market maker, ForexCT.com allows clients to trade on its streaming inter-bank market prices, making trading quick and efficient.

Deal directly from live price quotes & Lower transaction costs
Very few on-line brokers are able to offer their clients real-time bid/ask quotes, which facilitates instantaneous deal execution - no missed market opportunities. Real-time prices also allow investors to compare an on-line broker's dealing spread with that of other pricing services, to ensure they are receiving the best possible price on all their Forex transactions.

Real-Time profit and loss analysis
The fast-paced nature of the Forex market compels traders to execute multiple trades each day. It is vital for each client to have real-time information about their current position in order to make well-informed trading decisions.

Full access to market infromation
Access to timely and relevant information is critical. Professional forex traders pay thousands of dollars each month for access to major information providers. However, the very nature of the Internet affords users free access to reliable forex market information from a variety of sources, including real-time price quotes, international news, government-issued economic indicators and reports, as well as subjective information such as expert commentary and analysis, forex trader chat forums etc.

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