Forex vs. Futures



The forex market involves a lot of perks, compared to the futures market, and over stocks.

Liquidity

The forex market is considered as the most liquid market globally, as over $5.3 trillion is traded daily. This type of market is able to absorb trading volume, including transaction sizes that minimizes other markets capacity, unlike in the futures market, it only trades about $30 billion per day.    

As futures markets contain limited liquid, it isn’t able to compete well. Thus, the forex market is always liquid. Basically, positions and stop orders executed can be liquidated with limited or no slippage at all except in excessively volatile market conditions.

24-Hour Market

As the market opens in Sydney, trading session begins at 5:00 pm EST Sunday. At 7:00 pm EST the Tokyo market opens, while London follows at 3:00 am EST. At 8:00 am EST, New York opens and closes at 4:00 p.m. EST. Before New York trading closes, the Sydney market is back open. Therefore, it is a 24-hour market.   

Minimal or no commissions

The Electronic Communications Brokers are now widely known for more than a couple of years. A broker, on the other hand may require you to pay commissions, but those commission fees are very small unlike in the futures market which is a little bit higher. Brokers have tight competition that you will most likely get the best quotes as well as very low transaction costs.         

Price Certainty

In forex trading, it involves fast execution, including price certainty in normal market conditions. The difference is that the futures and equities markets do not offer price certainty or instant trade execution.

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