Forex and Stocks?

What is the Difference between Forex and Stocks?
in the past the securities markets have been looked at, at least by the bulk of the public, as an asset car. In the last ten years securities have taken on a more rough nature. This was maybe due to the downfall of the overall stock souk as many security issue knowledgeable extreme volatility because of the "illogical exuberance" displayed in the market. The oblique return linked with an "investment" was no longer true. (If indeed it ever was.) Many traders busy in the "day trader" rush of the late 90's only to grasp that from a power stance it took quite a bit of assets to day trade, and the return while potentially higher than long term invest was not exponential to say the least. After the onset of the "day trader" rush, many traders moved into the Futures stock index market where they found they could power their funds greater and not have their capital tied up when it could be earning interest or making money somewhere else. Like the futures markets spot coins trading is an brilliant vehicle for the pattern day trader that desires to leverage his present capital to trade. Spot coins trading provides more options and greater instability while at the same time stronger trends than currently available in stock futures indexes. Former securities day traders have an brilliant home in spot foreign swap.
A good example is the Globex market. While the Globex market is only stopped up for a 15 minute period each day, the liquidity on hand after the open outcry market is closed in Chicago is normally very low. Spreads are wider and the ability to place larger orders is missing. Because of this most volume traders are compulsory into trading the EFP market all night. The EFP market is the spot market priced in futures pricing. EFP's however come with extra fees, and are not on hand from an electronic border. Electronic access, speed, no fees, and supreme liquidity 24 hours a day makes mark FX the option for the currency buyer.

No Middlemen
central contacts provide many reward to the trader. but, one of the problems with any central exchange is the concern of middlemen. Any party positioned in flank by the trader and the buyer or vendor of the refuge or tool dealer will cost the them money. Either in time or in fees. Spot money trading does away with the middlemen and allows clients to network directly with the market maker liable for the price on a fussy currency pair. faster access, cheaper fixed cost.


Buy/Sell programs do not control the market
How many times have you hear that "fund A" was selling "X" or trade "Z"; Rumor had it that the funds were striking profits because of the end of the monetary year or because today is "triple witching day", all as an account of why this store is up or the souk in general is down or up on the session. No matter what your broker says the stock souk is very at risk to large fund buying and selling, and it is not rare for a fund to "run" a meticulous issue for a few days. In spot currency trading the liquidity of the market makes the chance any one fund or bank to control a particular currency very slim. Banks, Hedge funds, FCM's, government, retail currency conversion houses, and large net value persons are just some of the participate in the spot currency markets the liquidity is unparalleled.


At the mercy of Analysts on TV
Have you watch TV lately? Heard about a certain Telecomm stock and an analyst of a prestigous brokerage firm accused of keeping their recommendation "BUY" when the stock was rapidly moribund? It is the nature of these relations. No stuff what the government does to step in and discourage this type of activity, we have not heard the last of it. IPO's are big business for both the company going public and the brokerage houses. relations are mutually helpful and analyst work for the brokerage houses which need the company as clients. That catch-22 will never vanish. Foreign swap, as the main market, generate billions in revenue for the world's banks is a need of the global market. Analysts in foreign swap don't make the deal flow, they study.

7800 stocks vs 4 major currency pairs
There are just about 4,000 stock listed on the New York Stock swap. Another 2,800 are listed on the NASDAQ. Which single will you trade? Got the software? Got time? Got exploit in case you have aged radically when you lastly find your trade? In spot money trading you have 6 major market, 24 hours a day 5.5 days a week. You have just about 34 2nd tier currency to look at in your spare time (if you are so inclined). think on the majors, find your trade. Spend your day on the golf course, or with your kids instead of with your eye physician trying to identify why you are as double.


Commission free
Simply put- No commission. No payment fees, no exchange fees, no direction fees, no brokerage fees. Sure there may be diverse names for diverse fees at different places, but in spot currencies no commission means just that- NO COMMISSIONS.



Same price for broker assisted trades
No top for calling in orders, whether or not you trade via the phone, use market orders, stop orders, bound orders or even reliant orders. In spot coins trading you do not have to worry about extra charges. Ever wonder why a securities brokerage house charge you more if they have to pledge you a price than if you give them a market order with no price qualifier? Well you don't have to worry about it if you trade spot currency.


Trade off of your proceeds
Ever been up on a stock and wish you could leverage that income and get in a little more of the issue? In spot money trade you can. Use your open profits to add to your position. As you gain skill, trial with pyramid trading strategy. The option are endless as the souk is hurtful rim.
Previous
Next Post »

Thanks for comments EmoticonEmoticon