Forex comparison with other markets


The Forex market is a market that works 24 hours a day all week. Most brokers are open from Sunday night to Friday night with customer support available 24/7. Giving us the ability to trade during US, Asian, and European market hours allows us to tailor your own trading hours.


Our trades are executed instantly under normal market conditions, the price you buy or sell by clicking is the price you get. There is no discrepancy between the price displayed on the platform and the execution price to open a position. Orders are instant most of the time, but order execution in extremely volatile market conditions may experience delays.


Unlike the stock market, there is no restriction on short selling in the foreign exchange market. The trading opportunities that exist in the foreign exchange market do not matter if the trader is short or long, or in which direction the market is moving. Since forex trading always involves buying one currency and selling another, there is no bias in the market. This way you always have access to trades in a bullish or bearish market.


There are approximately 4,500 stocks listed on the New York Stock Exchange and another 3,500 are on the NASDAQ. Which one to operate? In the forex market there are dozens of currencies to trade, but the majority of market trades are with the 4 major pairs. Isn’t it easier to trade 4 currency pairs than to keep track of thousands of stocks?


More than $4 trillion is traded on the Forex market daily., being the most liquid market in the world. This market can absorb a volume of operations and transactions much greater than any other market. In the futures market trades $30 billion, therefore the futures market cannot compete with its limited liquidity. The forex market is liquid at all times, which means you can liquidate positions and execute stop orders, except in extremely volatile market conditions.


The Japanese market opens from 2:00 a.m. to 8:30 a.m., the Chinese market opens from 3:30 a.m. to 10:00 a.m. and the European market opens from 9:00 a.m. to 10:00 p.m. and finally the Sydney market that opens at 8:00 p.m. and closes at 2:00 a.m. It is a perfectly integrated 24-hour market that allows the trader to react immediately to favorable or unfavorable news. If major data comes out of England or Japan, while the US futures market is closed, the next day’s open could be wild.


Traders must have limits on their positions in order to manage risk. This amount is determined with respect to the money held in the trader’s account. The risk is minimized in the forex market, because the possibilities of the trading platform will automatically generate a margin call, if the amount of margin required exceeds the available capital in the account. All open positions will be closed immediately, regardless of the size or nature of the positions held in the account, until the risk is corrected again. In the futures market, your positions may be closed at a loss, and you will be responsible for any resulting shortfall in the account.

Sounds interesting to you, right? Keep learning with DTP with upcoming articles on our Blog.

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