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FOREX vs. EQUITIES

24-Hour Market

The Forex market is a seamless 24-hour market, open Sunday 2pm EST through Friday 4pm EST. With the ability to trade during the U.S. , Asian, and European market hours, traders have the advantage of immediately reacting to market news and determining their own trading hours.

Ability to Profit in Up or Down Market

Since Forex 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.

Please note that Forex, futures, options and equities trading involves substantial risk of loss. The valuation of these instruments and products may fluctuate, and as a result, clients may lose more than their original investment.

Technical Analysis

The same technical strategies and tools used to analyze the equities and futures markets can be applied to Forex. The large number of buyers and sellers in foreign exchange combined with the strong trending nature of the market make it the ideal market for technical analysis.

Commissions

BrewerFX charges no commission or additional transactions fees to trade Forex online or over the phone. BrewerFX is compensated for its services through the bid-ask spread.

Combined with the tight, consistent, and fully transparent spread, Forex trading costs are generally lower than those in other markets.

Liquidity

The spot Forex market is the largest and most liquid market in the world with a daily volume of over $1.4 trillion. BrewerFX has access to Forex clearing firms' and banks' platforms to provide customers with competitive prices, spreads, and executions.

Execution Quality and Speed

Currencies have the tendency to develop strong trends. Over 80% of volume is speculative in nature and as a result, the market frequently overshoots and then corrects itself. A technically trained trader can identify new trends and breakouts, which provide multiple opportunities to enter and exit positions.

Analyze Countries Like Stocks

In Forex trading, currencies are traded in pairs so that when a trader "buys" one currency he simultaneously "sells" the other. As with a stock investment, it is better to invest in the currency of a country that is growing faster and is in a better economic condition. Forex prices reflect the balance of supply and demand for currencies. Two primary factors affecting supply and demand are interest rates and the overall strength of the economy. Economic indicators such as GDP, foreign investment, and the trade balance reflect the general health of an economy and are therefore responsible for the underlying shifts in supply and demand for that currency. There is a tremendous amount of data released at regular intervals, some of which is more important than others. Data related to interest rates and international trade is looked at the closest.

Equity Market: Making the Transition to Forex

Equity markets can be used as a key indicator for movement in the Forex market. As technology has enabled greater ease with respect to transportation of capital, investing in global equity markets has become far more feasible. Accordingly, a rallying equity market in any part of the world serves as an ideal opportunity for all, regardless of geographic location. The result of this has become a strong correlation between a country's equity markets and its currency: if the equity market is rising, investment dollars are coming in to seize the opportunity. Alternatively, falling equity markets will have domestic investors selling their shares of local publicly traded firms only to seize investment opportunities abroad. To learn more about transitioning from trading equity markets to trading Forex, contact BrewerFX.

 



DISCLAIMER: Forex (or FX or off-exchange foreign currency futures and options) trading involves substantial risk of loss and is not suitable for every investor. The value of currencies may fluctuate and investors may lose all or more than their original investments. Risks also include, but are not limited to, the potential for changing political and/or economic conditions that may substantially affect the price and/or liquidity of a currency. The impact of seasonal and geopolitical events is already factored into market prices. The leveraged nature of FX trading means that any market movement will have an equally proportional effect on your deposited funds and such may work against you as well as for you. In no event should the content of this correspondence be construed as an express or implied promise or guarantee by B.I.G. Forex, LLC or any of its subsidiaries and affiliates that you will profit or that losses can or will be limited in any manner whatsoever. Past results are no indication of future performance. Information contained in this correspondence is intended for informational purposes only and was obtained from sources believed to be reliable. Information is in no way guaranteed. No guarantee of any kind is implied or possible where projections of future conditions are attempted.