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Forex vs. Equities
New Page 8
24-Hour
Market
The Forex market is a seamless 24-hour market, open Sunday 2pm EST through
Friday 4pm EST. With the ability to trade during the U.S., Asian, and European
market hours, traders have the advantage of immediately reacting to market news
and determining their own trading hours.
Ability to Profit in Up or Down Market
Since currency trading always involves buying one currency and selling another,
there is no structural bias to the market. This means a trader has an equal
potential to profit in a rising or falling market.
Technical Analysis
The same technical strategies and tools used to analyze the equities and futures
markets can be applied to forex. The large number of buyers and sellers in
foreign exchange combined with the strong trending nature of the market make it
the ideal market for technical analysis.
Commission Free Trading
Most forex brokers charge no commission or additional transactions fees to trade
currencies online or over the phone. Combined with the tight, consistent, and
fully transparent spread, forex trading costs are lower than those any other
market.
Liquidity
The spot Forex market is the largest and most liquid market in the world with a
daily volume of over $1.4 trillion. Brokers have access to the largest banks in
the world, our clients consistently receive the best prices, spreads, and
execution.
Execution
Quality and Speed
Our featured brokers pride themselves in offering the best execution possible in
all market conditions. In addition to maintaining fixed spreads 24 hours a day,
they offer the fastest possible execution at all times.
Analyze Countries Like Stocks
Currencies are traded in pairs so if a trader buys one currency he is
simultaneously selling the other. As with a stock investment, it is better to
invest in the currency of a country that is growing faster and is in a better
economic condition. Currency prices reflect the balance of supply and demand for
currencies. Two primary factors affecting supply and demand are interest rates
and the overall strength of the economy. Economic indicators such as GDP,
foreign investment, and the trade balance reflect the general health of an
economy and are therefore responsible for the underlying shifts in supply and
demand for that currency. There is a tremendous amount of data released at
regular intervals, some of which is more important than others. Data related to
interest rates and international trade is looked at the closest. Currencies are traded in pairs so if a trader ?buys? one
Equity Market: Making the Transition to Forex
Equity markets can be used as a key indicator for movement in the forex market.
As technology has enabled greater ease with respect to transportation of
capital, investing in global equity markets has become far more feasible.
Accordingly, a rallying equity market in any part of the world serves as an
ideal opportunity for all, regardless of geographic location. The result of this
has become a strong correlation between a country's equity markets and its
currency: if the equity market is rising, investment dollars are coming in to
seize the opportunity. Alternatively, falling equity markets will have domestic
investors selling their shares of local publicly traded firms only to seize
investment opportunities abroad.
To learn more about transitioning from trading equity markets to trading forex,
consider taking the FX Power Course.
Click here for more information on the FX
Power Course or
click here to try a demo trading account
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