6 Advantages Forex Trading is More Than Other Investments

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There are many benefits of forex trading or futures instead of stocks, such as:
First The lower edge
Just like futures and stock trading in the forex traders the ability to handle large amounts of currency has to manage in principle, by a small amount of leeway. However, the security requirements for trading futures usually requires about 5% of the total value of the farm, or 50% of the total value of stock margin requirements for Forex is about 1%. For example, the margin required to trade the forex market $ 1,000 for every $ 100,000. What this means is that the forex trading, forex traders money you can play 5 times as much value of product futures traders, or 50 times more than the stock traders. If you are trading on margin, this can create a very profitable way to an investment strategy, but it is important that you take the time to understand the associated risks. You should ensure that you understand how a margin account is going to work. You want to be sure that you read the margin agreement between you and the Clearing-fraction of the company. You want to talk to your account if you have any questions.
The positions you can have on your account is partially or completely demolished, the probability of a margin account falls below a predetermined amount. One can not be liquidated prior to the securities positions. Therefore should monitor margin balance regularly and use stop-loss limit orders open to any risk.
Second Not to the Commission and the Exchange no fees
When trading futures, you have to pay exchange and brokerage fees. Forex trading has the advantage of freedom. This is much better for you. Currency trading is a global inter-bank market that lets buyers search for sellers of the moment.
Even if you do not have to pay the premium for the broker to the buyer the seller is generally spreads larger than it is when you are trading futures. For example, if you were trading the Japanese yen / US dollar forex trading using 3-point would be distributed (worth $ 30). Act JY futures trading would likely spread by 1 point (worth $ 10), but also the agency’s commission is charged on top of that. This price can be as low as $ 10-and-out self-directed online trading, or as much as $ 50 for a full-service shop. However, it is all-inclusive prices though. You have to have to compare both online forex and your specific futures commission, to see who has the bigger one.
Third Limited Risk and Guaranteed Stops
If you trade in futures, the risk can be unlimited. For example, if you thought that we wanted to live cattle prices continue to rise in December 2003, shortly before the discovery of BSE in cattle in the United States found. Price has fallen dramatically since that moves the deadline several days in a row. They would not give to be able to have your position, and this could all be done on own account as a result destroyed. Since the price drop, go ahead and would have been obliged to seek more money to a deficit account.
4th Rollover Rates
When futures contracts expire, you must plan in advance if you plan to rollover your trades.Forex positions run every two days, and you need to rollover each trade just so that you stay in your position.
5th 24-Hour Market Place
With futures, you are usually limited to trading only a few hours that each market is opening on a given day. If a big news breaks out when the markets are closed, you have no way off, open up the market, which can be several hours away. Forex, on the other hand, is a 24 / 5 market. The day begins in New York, and follows the sun around the world, through Europe, Asia, Australia and returned to the U.S. again. You can always shop from Monday to Friday.
6th Free Market
Foreign exchange is perhaps the biggest market in the world where the average daily U.S. $ 1,400,000,000,000th It is 46 times larger than all the combined futures markets! If a large number of people trading forex around the globe, it is very difficult to control the governments themselves, the price of its currency.

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