There are a lot of financial markets where you can make much more money than if you just put your money in a CD or savings account. Money markets and bond markets, for example, don't usually give you returns in the double digits. But there are some markets where you can get returns in the double digits, and this article will compare a couple of them.
Some people call it the FX Market, but it's also called the Forex Market. It's one of those markets where you can make gains in the double digits. On the Futures market, you can also make gains of more than 10%. There are clear differences between the two markets, and you should know what they are before you get into either one.
Liquidity:
Forex Trading is better than any other market, even the Futures Market, because it has more liquidity. There is no way to compare the Forex Market and the Futures Market, where the average daily volume is close to $2 trillion and the average daily volume is $30 billion. The Foreign Exchange (Forex) market is much more liquid than the Futures Market. This means that when it's time to trade, it will be much easier to fill Forex Trades than Futures Market Trades. This speed means that there is more money to be made. When you combine this with the fact that you can make trades right away, you can make a lot of trades quickly.
24 Hour Business:
The Forex Currency Trading System (Forex) has an advantage over Futures in that you can trade whenever you want, 24 hours a day, five days a week. The Forex Market is open longer than any other market and for more hours. If someone really wants to make money in a market, it would be great to have almost as much time as they want each week to make trades. You can be one of the first people to take advantage of something that happens around the world. You won't have to wait until the morning for a market to open. You can trade right away from your computer.
Trades are done quickly:
When you use a Forex Currency Trading System, trades happen right away. There are no delays like there can be in the Futures or Equity Markets. And your order is filled at the best price possible, so you don't have to guess what price it might be filled at.
There are no fees:
Forex Trading, also known as FX Trading, doesn't charge any fees because it takes place on an interbank market that matches buyers and sellers in an instant. There are no fees charged by middlemen like there are in other markets. The difference between the bid price and the ask price is where Forex trading firms make a little money. This means that when you trade Forex instead of Futures, where you usually have to pay commissions, you can save money.
Better Use of Assets:
When you trade Forex online, you have a lot more power than when you play the Futures Market. But on the Futures Market, you can also buy or sell options on futures, which increases your leverage. When you know what a currency will do, leverage can be very important. In Forex Trades, you can get 200:1 or more, but in Futures, you can only get much less. This means you could make a lot more money if you act in the right way.
There will be limited risk:
Since Forex Traders must have position limits, the risk is limited because the online features of the Forex Trading system automatically start a margin call when the margin amount is more than the value of the account in dollars. This keeps a Forex Trader from losing too much if their position goes the wrong way. It is a good safety feature that isn't always available in other financial markets.
When thinking about the differences between Forex Trading and Futures Trading, just think about how you like to trade and how much risk you are willing to take. There are benefits to FX trading that could help you make a lot of money if you come up with a good system and stick to your trading limits. If you are ready to start, start looking for a good company to open a Forex Trading Account with.
