Forex vs. Equities and Futures
In our opinion, 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 100:1* | 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 Trade in Rising or Declining Markets
Unlike equity and fixed income managers, a Forex trader is able to trade 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 diversification and increased portfolio risk management.
0 comments:
Post a Comment