This list are not in priority order but based on numeral and alphabetical order.
1. 24/5 Market
Forex is a 24/5 phenomenon. Let's say the day begins Monday in Sydney Australia, and follows the sun around the globe through Asia, Europe, North America and back to Sydney again. You can trade any time Monday to Friday. Indeed, those in New York are able to start trading on Sunday night when Sydney opens on Monday morning. The best home business?
Futures trading is limited to the few hours each market is open.
2. Commission Free Trade
Forex trading is commission free. Period. Futures traders have to incur exchange and brokerage fees. Even though the net cost may be slightly higher, Forex traders do not have to be bothered by complexity of commission, exchange differential and brokerage fees.
3. Extremely Large Market
Perhaps, Forex is the largest market in the world with an average daily volume of US$2.5 trillion. That is 55 times larger than futures markets. It means there are always buyers and sellers around to match the deals.
4. Guaranteed Stop Loss and Profit Taking
Futures traders carry unlimited risk. If traders buy in expectation of bullish period, but the reverse i.e. dramatic bearish happens, their entire equity could be completely wiped out. I have an experience when my entire futures equity was wiped out.
For Forex, traders could avoid loss or take profit.
5. Low Startup
Unlike trading on futures and stocks which requires a margin of 5% and 50% respectively, the margin requirement for Forex is 1%. In fact some platforms provide up to 200 times of trading value. It simply means a Forex traders are able to control trading value as much as 5 or 50 times more than those of futures and stocks traders. How would you like to start at $25?
6. No One Can Control
It is very hard for individual or even governments to control value of any currency. We are aware of hedge fund managers speculated on currency that caused Asian currency crisis but it is isolated and far in between, not an everyday phenomenon. Especially for stocks and other investment schemes, insider trading or scam activities would bring us to the knee.
7. Positions Rollover
Forex positions can easily be rolled over after two days upon expiry. For futures contracts, traders have to plan if they are going to roll over their trades.
8. Selection of Few or Just One
Forex traders may execute trades to few pairs of EUR/USD, GBP/USD, USD/CHF or USD/JPY or just one. I find it very interesting to concentrate just one pair i.e. EUR/USD.
How would you select especially from hundreds or even thousands of stocks?
Abdul R Mohamad spent many years of his life in oil and gas industry specializing in sourcing. He has immense experiences in cost-cutting initiatives and always strive to improve the bottom line. He is now retired in the Far East and enjoys the tropical weather and writing. He is a proponent of free enterprise and have identified many Business Opportunities on the internet. He intends to meet a lot more people now that he has the time for himself and his family and to get closer to his associates, friends and relatives, something he has missed for a long time.
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