The
futures market does not offer instant execution
or price certainty. Even with electronic trading
and limited guarantees of execution speed, the
price for fills on market orders is far from
certain. In the futures market, the prices represent
the LAST trade, not necessarily the price for
which the contract will be filled.
The currency market, in contrast, is very liquid, meaning positions can be liquidated and stop orders can be executed quickly. On the FX trading station, traders execute directly off real-time streaming prices.
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 executed rapidly under normal conditions.
On the FX trading
station, traders execute directly off real-time
streaming prices. This holds true even during volatile times and
fast moving markets. In the futures market,
execution is uncertain because all orders must
be done on the 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 executed rapidly under normal conditions.
Risk
is Strictly Limited
Trading with us, never pay a debit balance! In the event that
funds in your account fall below margin requirements,
our Dealing Desk will simply close all open
positions. That means that, even if you are
dead wrong and there is a catastrophic market
move against you, you can never lose more than
the amount of money you have in your account.
Your risk can be further limited and defined
by the use of stop loss orders that are granted.
High
Volume
Due to its enormous size, the
currency market is the most liquid market in
the world. The spot currency market is a $1.4
trillion daily market, making it the largest
and most liquid market in the world. If you
compare this to the $30 billion daily average
futures market, it becomes clear that the futures
market provide only limited liquidity. The currency market, in contrast, is very liquid, meaning positions can be liquidated and stop orders executed without slippage under normal market conditions.
Commission
- Free Trading*
TIn the futures market traders
must pay a spread and a commission. All traded
financial products have a bid (buy) price, and
an ask (sell) price, with the difference defining
the spread, or cost of execution. Up until recently,
lack of transparency in the futures market has
disguised the spread. Now online trading platforms,
which show the depth of the market by including
both the buy and sell price, allow traders to
see the real cost of the trade. Because the
currency market offers round-the-clock liquidity,
traders receive tight, competitive spreads both
intra-day and night. Futures traders are more
vulnerable to liquidity risk and typically receive
wider dealing spreads, especially during after
hours trading.
FXTSP charge no commission
or transactions fees to trade currencies online
or over the phone. The over-the counter structure
of the currency market eliminates exchange and
clearing fees, which in turn lowers transaction
costs. Costs are further reduced by the efficiencies
created by a purely electronic market place
that allows clients to deal directly with the
market maker, eliminating both ticket costs
and middlemen. All clients have access to dealable
bid/ask quotes. In the futures market the prices
represent the LAST trade, not necessarily the
price for which the contract will be filled.
This lack of transparency hides the true cost
of the trade.
*Forex Capital Market Group is compensated through the bid/ask spread.
Reporting
and Back Office Capabilities
In the spot Forex market, traders
can see the value of their positions and account
equity move up and down with the market in real
time. The key information for every account
is re-calculated and updated every time the
exchange rates change. Traders have immediate
access to detailed information regarding every
open position, open order, and the generated
P/L per trade. Traders also have 24-hour access
to full, real time snapshots of their account
statement since inception, or on a daily, weekly,
monthly or yearly basis. As a trader this means
you never have to approximate your account equity
or be uncertain in regards to available margin.
