How Is Forex Trading Carried Out

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How Is Forex Trading Carried Out

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Title: How Is Forex Trading Carried Out


1
How Is Forex Trading Carried Out?
  • Forex trading is carried out slightly different
    than equities and bonds trading. Currency trading
    is carried out in pairs.
  • Currency traders have to deal with two
    instruments or currency pairs whereas stock
    trading involves only one instrument or buying or
    selling of company shares.

2
Forex Trading Features
  • The largest financial market in the world
  • Opened for trading 24-hour around the clock from
    2015 UTC on Sunday until 2200 UTC Friday
  • No costs or commissions is applied for executing
    trades
  • Provides greatest amount of liquidity
  • Traders can profit in both bull and bear markets
  • Instant execution with minimal slippage and
    errors
  • Short selling is permitted without an uptick
  • Offers greater customizable leverage

3
Equities Trading Features
  • Offers decent market liquidity
  • Opened for trading only from 930 A.M. to 400
    P.M. EST (New York Time) with limited after-hours
    trading
  • costs and Commissions apply for executing trades
    and varies by brokers
  • Short selling stocks involve an uptick rule which
    could be frustrating to many day traders
  • Instant execution in many cases is not available
    which result in slippage and errors
  • Leverage offered is fraction of the leverage
    offered in forex market

4
Futures Trading Features
  • Market liquidity is limited, depending on the
    month of the contract traded
  • Limited market hours and are dependent on the
    product traded
  • The presence of exchange fees results in more
    costs and commissions and varies by brokers

5
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6
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7
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