There are approximately 2,800 stocks listed on the New York Stock forex last tracking. Another 3,100 are listed on the NASDAQ. Got the time to stay on top of so many companies?
In spot currency trading, there are dozens of currencies traded, but the majority of market players trade the four major pairs. Aren’t four pairs much easier to keep an eye on than thousands of stocks? That’s just one of the many advantages of the forex market over the stock markets. 24-Hour Market The forex market is a seamless 24-hour market. With the ability to trade during the U. Asian, and European market hours, you can customize your own trading schedule.
Minimal or No Commissions Most forex brokers charge no commission or additional transactions fees to trade currencies online or over the phone. Combined with the tight, consistent, and fully transparent spread, forex trading costs are lower than those of any other market. Instant Execution of Market Orders Your trades are instantly executed under normal market conditions. Under these conditions, usually the price shown when you execute your market order is the price you get. Keep in mind that many brokers only guarantee stop, limit, and entry orders under normal market conditions. Fills are instantaneous most of the time, but under extraordinarily volatile market conditions, like during Martian attacks, order execution may experience delays.
Short-Selling without an Uptick Unlike the equity market, there is no restriction on short selling in the currency market. Trading opportunities exist in the currency market regardless of whether a trader is long or short, or whichever way the market is moving. Since currency trading always involves buying one currency and selling another, there is no structural bias to the market. So you always have equal access to trade in a rising or falling market. No Middlemen Centralized exchanges provide many advantages to the trader. However, one of the problems with any centralized exchange is the involvement of middlemen. Any party located in between the trader and the buyer or seller of the security or instrument traded will cost them money.