Forex is the largest financial market in the world, with the daily
trading volume being 5.3 trillion US dollars. It covers transactions of
all currencies in the world. There is no central exchange in the forex
market, all transactions are conducted independently by traders on the
MT4 system. And round-the-clock services are provided within 7 days in
the forex market. When trading in the time zone of a country ends, the
market may only open on the other side of the world. For example, Sydney
opens at 5:00 pm (EST); Tokyo opens at 7:00 pm (EST); London opens at
3:00 am (EST); and NewYork opens at 8:00 am (EST). The closing time of
the NewYork market coincides with the opening time of Sydney. Therefore,
transactions can be made at anytime.To get more news about https://www.wikifx.com, you can visit wikifx official website.
Forex transactions require a high execution speed, because
transactions need to be done immediately. Traders can adjust their
transactions with the change of the market. The quotations traders get
are always based on the real-time market. In addition, traders only need
to pay spread fee, due to the fierce competition in the market, which
causes most brokers to offer fairly low spread.
A Futures contract
is a kind of financial agreement between a buyer and a seller for
delivering a commodity at a certain time in the future. And the buyer
buys a futures contract, which means that he agrees to buy a commodity
at a fixed price in the future, and the seller must sell it at the
agreed price. The delivery date can be a week, a month, a quarter or
even a year. Traders in the futures market can also trade in both
directions.
Compared with the forex market, the futures market is much smaller,
with an average daily trading volume of about $50 billion. Therefore,
the liquidity of futures is much smaller than that of the forex market.
Unlike forex, futures transactions must be conducted in trading centers.
CME, the Chicago Mercantile Exchange, has the most traded futures
contracts. In addition, Intercontinental Exchange (ICE) and European
Futures Exchange (Eurex) are also exchanged with a large trading volume.
The delivery price of futures trading is uncertain. Futures trading
usually does not take place immediately, so it is difficult for traders
to know exactly how many goods they can buy or sell.
In the futures market, investors need to pay spread fees, commission
fees, settlement and exchange fees. These fees can accumulate quickly
and will consume traders profits eventually.
WikiFX suggestions: If you are preferring simple trading, it is more
appropriate to choose forex than futures. The forex market has high
liquidity and its openness to retail traders can provide a fairly good
investment environment. The retail traders of futures account for
relatively few, and its high risk makes the futures market more suitable
for investors with certain trading experience. Whether you decide to
trade forex or futures in the end, the most important thing is to make a
trading plan, strictly follow the principles, and stick to it.
