Forex - Futures

Liquidity

Every day several trillions of dollars are moved in operations in the Forex market, making it the most liquid financial market in the world. This market can absorb such quantities of volume and transactions that make the capabilities of any other market appear dwarfed. The forex market always maintains its liquidity, important positions can be liquidated and stopped with executed orders without decreases, except that the market is, of course, in very volatile conditions.

AdvantageForexFutures
24 hrs to workYesNo
Operation without commissionsYesNo
Leverage greater than 1: 400YesNo
Safe priceYesNo
Guaranteed risk limitYesNo

24 hour market

At 2.15pm EST on Sundays, traders start trading in the markets of Sydney and Singapore. At 7pm ETS, open the Tokyo market, followed by London market at 2am EST. Before the New York market opens, the markets of Sydney and Singapore are already open again, it is then similar to a 24-hour market!

As a Forex trader, this allows you to know the news, whether favorable or unfavorable, immediately. If there is important news from England or Japan, while the US market is still closed, the next day there may be a major shift in it. (During the night, the markets that work on future currency contracts exist, but the traders do not have much liquidity and for the retail investor it is difficult to access them)



Free commission operations

Do you know what is good about trading currencies? That you do not have to pay commissions! Because you work directly with the market via the Internet, the costs of intermediaries are eliminated. Yes there is an initial cost in any operation you open, but this cost is reflected in the differential between the purchase and sale price (called the spread), and is also present in futures trading. Online brokers offset their services by this difference between the purchase and sale price and not by means of commissions (except in some cases of ECN type brokers in which they offer a very low differential applying a volume commission).


Safe price

When trading in Forex, there is a quick execution of the orders and the price is maintained as long as the market is under normal conditions. On the contrary, other markets do not offer a safe price or instantaneous execution of an operation. Despite the advantage of electronic transactions and the guaranteed speed of executing an order, prices in other markets are far from being the same. The prices charged by the brokers represent the last trade, not necessarily the price for which the contract will be executed.


Guaranteed risk limit

Traders may open positions by setting a loss limit in order to better manage the level of risk. In addition, the total risk is relative to the amount of money in each trader's account. The risk is minimized in the Forex market because the capabilities of operating in an online trading platform automatically generate a warning if the required margin exceeds the capital that the trader has in his account. All open positions close immediately, regardless of the size or nature of the positions held in the account. In other markets, the position is settled as a loss and the person is responsible for any remaining debt in the account. That's not good!


What you have to know about the Forex market

The strategies of Donald Trump in political, commercial and economic matters do not seem to sit well with the stability of many countries, nor with the well-being of many nations. However, the forex market and trading investments in currencies or digital currencies are benefiting from the situation of uncertainty and disagreements between the major world powers.

The US dollar continues its course, and becomes the main currency of forex operations. Thus, during these last months and still more strongly during these last weeks, the dollar, along with the yen, the pound, and the euro, has been a star of the forex market: traders are taking advantage of the volatility of the greenback, as a consequence of the tensions between the United States and other countries, to open operations with this currency and obtain profits with the changes in prices.

In addition to the dollar as a strong point in the forex, foreign currency transactions have also been greater than in the rest of the instruments: commodities, stocks, ETFs. After forex trading operations, trading operations in American indices have also been numerous for the same reasons. On the other hand, also transactions between the dollar and crypto currencies have been an option for some traders.

The forex market or forex market is an option that many investors take into account. In general, to open transactions in currency pairs, investors use digital brokers that allow opening operations with leverage and do not require high capital to operate. In addition, they offer information on the financial market and its latest developments so that trading decisions are easier to make.




What is the situation that has led many traders to be aware of the US dollar to invest in forex? The president of the White House decided to put tariffs on some raw materials such as steel and, more recently, on cars arriving in the United States from other countries. Countries of South America and the Asian giant, China, were the main affected but Trump's tariff policies are currently also affecting the European Union, mainly the automotive industry of countries such as Germany.

Many countries have denounced the situation, and all the decisions and measures of Trump before the WTO (World Trade Organization). It seems that the American president is not going to change his mind and goes ahead with his commercial policies. There are many affected countries and now, the latest development, Trump threatens to take the United States out of the WTO. His statements on the WTO have coincided with the renewal of the TCLAN, the United States Free Trade Agreement.

In addition to the possible departure of the United States from the WTO, Trump also plans to increase tariffs for other industries and if this happens China would be the most affected. At the moment, traders take advantage of this situation to trade in the US dollar, although everything points to volatility taking over other American financial instruments if the situation does not subside.