FOREX
VS OTHER MARKETS
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.
*
Without proper risk management, this high degree of leverage
can lead to large losses as well as gains
|
