Thursday, April 9, 2009

Against equity Forex

Forex market offers several advantages over private equity, in terms of:

24 hours of free market
The biggest advantage of the Forex market on a balance of action is 24 hours of a free market. Active 5 days a week, the Forex market which gives its equity traders is not the action. Justice is the action on the business hours and limited Forex, the only trading platform moving steadily. One of his works 24 hours in the market, there are some investors, somewhere in the world, the dynamics of trading in foreign currency. This also allows these investors to all kinds of news in the market to react immediately.

Increased trading volume
The volume of trade or in equity hauptsächlichbörsen is often 100 times smaller than the foreign exchange market. In addition, most traders are ready to currencies because of the need for countries to buy and sell, which would keep the property for others to act.

No commissions and trading fees
Forex is profitable compared to private commercial reasonableness, especially in the negotiation of fees and charges said. Most sites, the action of using Forex invite investors or traders with any commissions or fees when requesting access to market information from major retailers for the purpose required. But in the case of transactions, commissions range from $ 5 to $ 100 or more per trade for the full-service brokers.

Price stability through superior liquidity
The trading volume of the Forex market is 100 times more than the New York Stock Exchange is, there are always traders, well, here to buy or sell currencies. The superior liquidity of the major currencies also helps ensure price stability in the Forex market. But this is not the case for equity, which is a low volume of trade. This may be followed by a consequence, investors in stock market liquidity risk, resulting in a higher price developments.

Higher leverage
Higher leverage gives the foreign exchange market, compared with hauptsächlichbörsehandel all markets. Although in general the means available to the online Forex dealers is 100:1, the influence resulting from the capital is offered as a low margin of 2:1. As high leverage enables the Forex traders, much larger sum of currency, to act as they have resigned. It also depends on the types of foreign exchange brokers takes into account the action.

Potential benefits
Forex market allows investors in the course up and down market to serve and provide service for buying and selling currencies. This serves as another major advantage of the Forex market in the trading of equity. This is because the equity market is more difficult to act, while the ongoing decline in the market, as some market policies. There is some risk aspects will also read more about the risks in Forex

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