Post Tagged with: "trading costs"
Forex Market Basic Features
The Forex market is unique, and has many interesting characteristics. This post lists all of them, and gives quick links to more elaborate information: Continuous Trading Information is available instantly, all the time High liquidity and High volume Globalization without Geography Low Trading Costs Large Leverage Influence and foul play are impossible Conclusion Those were
High liquidity and High volume
The daily volume in the Forex market is estimated at 3 trillion dollars! This inconceivable figure is slowly on the rise. This astonishing number (3,000 billion) is divided between deals intended for payments related to import and export, and investment deals. These investment deals (or speculation) are 95% of the flow in the market. This
Low Trading Costs in the Forex Market
The aforementioned high volume and liquidity brought to high competition between trade vendors. Intense competition lowered the spreads between selling and buying prices. These spreads, or margins, is the cost of the deals, and the profits of the trading agencies. The cost is one of the lowest in the international financial markets, compared to the