Forex Kurt

Forex Trading Versus Future Trading – Which is Best?

There are different financial markets which can generate good returns on investment rather than depositing the money in banks. Some financial markets like money market or bond market will not give returns in double digits. However, some other markets like Forex and future trading markets will return gain in double digits.

The Forex market and future market are very profitable markets and yield good returns. But there are some significant differences between the two which are discussed here.

HIGH LIQUIDITY:

Forex market is the one with highest liquidity than any other financial market including futures trading. The forex market has a daily turnover of around 2 Trillion dollars while the future trading has an average volume of 30 billion. The liquidity in forex trading is definitely much higher than futures market. Forex trades will be filled faster than futures market and the potential profit is high. Also, the trade execution is instantaneous in forex and we could make plenty of trades very quickly.

24/7 TRADING:

Another great advantage of forex trading when considering future trading is that, forex market is open 24/7. The forex market is open for longer time than any other market. If a person wants to trade and make more money, then it would be great if the market is open for unlimited time and this is satisfied by forex market. Whenever certain events occur, it is best to take complete advantage of the present situations and we should not wait for the market to get open in morning. We can trade instantaneously by using a personal computer through online forex trading.
FAST EXECUTION OF TRADES:

When we use forex trading system, we can receive the trading executions immediately. There is no delay in the equity markets. And our order will be completed at the lowest possible rate rather than guessing at what price our order is filled as in case of futures trading.

NO COMMISSIONS:

There is no commission in forex trading since it is an interbank market that matches the sellers and buyers instantly. There are no brokers or middlemen involved like any other markets. There is a variation between the asking and bidding price and that is the point where the forex trading companies get some small profit. This means that we are saving money in terms of commission than any other market.
HIGHER LEVERAGE:
The online forex trading systems could give us higher leverage than playing futures market. But in the futures market, we can sell or buy options on futures which can increase our leverage. Leverage is very crucial when we know the power of currency trading and we can achieve around 200:1 profit which is very high in forex trading than futures trading. So, forex trading can give us potentially more profit than futures trading.

Other forex site: Events Forex

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