![\"Forex](\"https:\/\/bpcdn.co\/images\/2016\/05\/pre-school-forex-vs-futures.png\" "\\"Forex")
In the forex market, $6.6 trillion is traded daily, making it the largest and most liquid market in the world.<\/p>\n\n\n\n
This market can absorb trading volume and transaction sizes that dwarf the capacity of any other market.<\/p>\n\n\n\n
The futures market trades a puny $30 billion per day. Thirty billion? Peanuts!<\/p>\n\n\n\n
The futures markets can\u2019t compete with its relatively limited liquidity.<\/p>\n\n\n\n
The forex market is always liquid, meaning positions can be liquidated and stop orders executed with little or no slippage, with exception to extremely volatile market conditions.<\/p>\n\n\n\n
24-Hour Market<\/h2>\n\n\n\n
At 5:00 pm EST Sunday, trading begins as markets open in Sydney.<\/p>\n\n\n\n
At 7:00 pm EST the Tokyo market opens, followed by London at 3:00 am EST.<\/p>\n\n\n\n
And finally, New York opens at 8:00 am EST and closes at 4:00 p.m. EST.<\/p>\n\n\n\n
Before New York trading closes, the Sydney market is back open \u2013 it\u2019s a 24-hour seamless market!<\/p>\n\n\n\n
As a trader, this allows you to react to favorable or unfavorable news by trading immediately.<\/p>\n\n\n\n
If important data comes in from the United Kingdom or Japan while the U.S. futures market is closed, the next day\u2019s opening could be a wild ride.<\/p>\n\n\n\n
Overnight markets in futures contracts do exist, and while liquidity is improving, they are still thinly traded relative to the spot forex market.<\/p>\n\n\n\n
Minimal or no commissions<\/h2>\n\n\n\n
With Electronic Communications Brokers becoming more popular and prevalent over the past couple of years, there is the chance that a broker may require you to pay commissions.<\/p>\n\n\n\n
But really, the commission fees are peanuts compared to what you pay in the futures market.<\/p>\n\n\n\n
The competition among spot forex brokers is so fierce that you will most likely get the best quotes and very low transaction costs.<\/p>\n\n\n\n
Price Certainty<\/h2>\n\n\n\n
When trading forex, you get rapid execution and price certainty under normal market conditions. In contrast, the futures and equities markets do not offer price certainty or instant trade execution.<\/p>\n\n\n\n
Even with the advent of electronic trading and limited guarantees of execution speed, the prices for fills for futures and equities on market orders are far from certain.<\/p>\n\n\n\n
The prices quoted by brokers often represent the LAST trade, not necessarily the price for which the contract will be filled.<\/p>\n\n\n\n
Guaranteed Limited Risk<\/h2>\n\n\n\n
Traders must have position limits for the purpose of risk management. This number is set relative to the money in a trader\u2019s account.<\/p>\n\n\n\n
Risk is minimized in the spot forex market because the online capabilities of the trading platform will automatically generate a margin call if the required margin amount exceeds the available trading capital in your account.<\/p>\n\n\n\n
During normal market conditions, all open positions will be closed immediately (during fast market conditions, your position could be closed beyond your stop loss level).<\/p>\n\n\n\n
In the futures market, your position may be liquidated at a loss bigger than what you had in your account, and you will be liable for any resulting deficit in the account. That sucks.<\/p>\n\n\n\n Judging by the Forex vs. Futures Scorecard, Mr. Forex looks UNBEATABLE<\/strong>! Now meet the winners who trade the forex market.<\/p>\n","protected":false},"excerpt":{"rendered":" It\u2019s not just the stock market. The forex market also boasts of a bunch of advantages over the futures market, similar to its advantages over stocks. But wait, there\u2019s more\u2026 So much more! Liquidity In the forex market, $6.6 trillion is traded daily, making it the largest and most liquid market in the world. This […]<\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[892],"tags":[],"_links":{"self":[{"href":"https:\/\/mudassirbackup.infinitycodestudio.com\/index.php\/wp-json\/wp\/v2\/posts\/9446"}],"collection":[{"href":"https:\/\/mudassirbackup.infinitycodestudio.com\/index.php\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/mudassirbackup.infinitycodestudio.com\/index.php\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/mudassirbackup.infinitycodestudio.com\/index.php\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/mudassirbackup.infinitycodestudio.com\/index.php\/wp-json\/wp\/v2\/comments?post=9446"}],"version-history":[{"count":0,"href":"https:\/\/mudassirbackup.infinitycodestudio.com\/index.php\/wp-json\/wp\/v2\/posts\/9446\/revisions"}],"wp:attachment":[{"href":"https:\/\/mudassirbackup.infinitycodestudio.com\/index.php\/wp-json\/wp\/v2\/media?parent=9446"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/mudassirbackup.infinitycodestudio.com\/index.php\/wp-json\/wp\/v2\/categories?post=9446"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/mudassirbackup.infinitycodestudio.com\/index.php\/wp-json\/wp\/v2\/tags?post=9446"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}ADVANTAGES<\/th> FOREX<\/th> FUTURES<\/th><\/tr> 24-Hour Trading<\/td> YES<\/td> No<\/td><\/tr> Minimal or no Commission<\/td> YES<\/td> No<\/td><\/tr> Up to 500:1 Leverage<\/td> YES<\/td> No<\/td><\/tr> Price Certainty<\/td> YES<\/td> No<\/td><\/tr> Guaranteed Limited Risk<\/td> YES<\/td> No<\/td><\/tr><\/tbody><\/table><\/figure>\n\n\n\n