Forex vs. Futures
24-Hour Market
The Forex market is a continuous 24-hour endeavor form its open at 2pm
EST Sunday afternoon with the Sydney-Auckland market until its close at 5pm
EST Friday in New York. Forex trading follows the day around the world: Tokyo's open at 9pm follows Sydney, London begins at 2am and finally New York takes over at 8am. The seamless 24 hour nature of the Forex market gives the trader the unique experience of reacting to news and worldwide developments instantaneously, participating in real time in the largest trading market in the world. Forex transactions are off-exchange foreign currency transactions.
Go Long (Bullish) or Short (Bearish)
Unlike the equity market, there is no restriction on short selling. Profit potential exists in the currency market regardless of whether a trader is long or short, or which way the market is moving. Since currency trading always involves buying one currency and selling another, there is no structural bias to the market. This means a trader has an equal potential to profit in a rising, or falling market.
Flexible Leverage
ApexForex allows greater leverage than the equities, futures or options market.
ApexForex's trading platform was designed to effectively monitor and control risk exposure in real time with an extreme degree of precision. Traders can utilize 100:1 leverage (or even greater) without risking a margin call situation. Leverage is a double-edged sword. Without proper risk management this high degree of leverage can lead to large losses as well as gains.
Risk
Off-exchange foreign currency transactions involve a high degree of leverage which results in a high degree of risk.
High Liquidity
The spot Forex market is a $1.4 trillion daily market, making it the largest and most liquid market in the world. This market can absorb trading volume and transaction sizes that dwarf the capacity of any other market. If you compare this to the $30 billion per day futures market it becomes clear that the futures markets provide only limited liquidity. The market is always liquid, meaning positions can be liquidated and stop orders executed without slippage.
Execution Quality and Speed
The futures market is know for inconsistent execution, both in terms
of pricing and execution time. Every futures trader has
experienced a half hour, or more wait, for a market order fill only to
find out it had been executed at a price far away from where the
market was supposed to be trading. Even with electronic trading
and limited guarantees of execution speed, the price for fills on
market orders is far from certain. We offer instantaneous
execution and price certainty. On our trading platform, traders
execute directly off of real-time streaming prices.
In the futures market, execution is uncertain because all orders must
be done on a centralized exchange. This creates a situation
where liquidity is limited by the number of participants, which in
turn limits quantities that can be traded at a given price.
Real-time streaming prices ensure that market orders, stops, and
limits are executes as quickly as possible.
Margin/Risk Management
Risk is minimized with our trading
platform because of its capabilities to automatically generate a
margin call if the required margin amount exceeds the dollar value of
the account as a result of trading losses. All open positions
will be closed immediately regardless of the size or nature of
positions held within the account. In the futures market if the
market moves against your positions may be liquidated at a loss and
you will be liable for any resulting deficit in the account.
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