Monday, May 23, 2011

Forex and other markets

Forex v / and other markets

Other markets
Foreign Exchange Market
Limited floor trading hours dictated by the time zone of the trading location, significantly restricting the number of hours the market is open and when it can be accessed. The FOREX market is open 24 hours a day, 5.5 days a week. Because of the decentralized clearing of trades and overlap of major markets in Asia, London and the U.S., the market remains open and liquid throughout the day and night.
Threat of drying up of market liquidity, after a few hours or because many market participants decide to stay on the sidelines or move to more popular markets.
Most liquid market in the world eclipsing all others in comparison. Most transactions must continue, since currency exchange is a required mechanism needed to facilitate world trade.
Traders are gouged with fees, such as commissions, clearing fees, exchange fees and government fees.
Commission without

Large capital requirements, high margin rates, restrictions on shorting, very little autonomy. One consistent margin rate 24 hours a day allows Forex traders to leverage their capital more efficiently with as high as 100-to-1 leverage.

Short selling and stop order restrictions.
Nothing.

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