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The combined world futures markets are about 46 times smaller than the forex market. Forex provides great daily price stability and high leverage, unlike the futures market.
> Forex Provides More Leverage
You can control the degree of leverage you wish to employ in trading. Forex Capital Management sets your leverage level at the most lenient requirement, based on the size of your account, automatically. For example, a US$30,000 account has a margin requirement of US$1,000 for every position held that approximately equals to US$100,000 worth of currencies. At this account level, 1% of the total value of the currency traded requires to be maintained on margin – a leverage ratio of 100 to 1.
> Forex Provides Less Liability
Forex Capital Management gives investors important advice in the volatile currency marketplace. When the funds in an account drop below margin requirements, any open positions will be closed in order to protect the account from catastrophic losses. If your strategy proves to be wrong and there is a significant move against you, your liability will never exceed the value in your account.
> Forex is Maximum Liquidity
The forex market is the largest and the most liquid market in the world, with the spot foreign exchange market accounting for on average US$1.5 trillion in transactions daily. The foreign exchange market can absorb transaction sizes and trading volumes that cut down the capacity of other markets. Stop orders and liquidation of positions are carried out without slippage.
> Forex Trades 24-Hours a Day
Forex trading is your entrance to the world economy. Trading starts on Sunday, 5:00 PM Eastern Time, with the opening of the markets in Singapore and Sidney. Several hours later, the Tokyo market opens. Next is London, which is open at 2:00 AM Eastern Time on Monday. By the time the day begins in New York, the world currency markets have been working for fifteen hours. You determine the time of your trades, reacting instantly to any news or market pressures.
> Forex is Firm Prices and Instantaneous Execution
Forex Capital Management makes possible price certainty and instant execution on orders up to US$1 million. Your trading is based on real time streaming currency prices, which is why there is no discrepancy between the offered price and the execution price. This remains true even during fast moving, volatile trading sessions. Streaming prices ensure that your orders, limits, and stops are executed without slippage and partial fills.
> Forex Enables Automatic Rollovers
Forex Capital Management enables open positions to be rolled over automatically every two days. At 5:00 PM Eastern Time, your account automatically rolls over any open positions, swapping the trade forward to a settlement date in two business days in the future. Rolling over a position includes some carrying costs, which is also true with futures.
Rolling over a Forex position can sometimes make you money, as carrying cost is determined by the difference between interest rates for the two currencies. You can gain on the spot rollover from the premium relationship of the long currency relative to the short currency, if you are long in the currency with the higher interest rate. Gain is ascertained by the differential between the interest rates of the two currencies, and fluctuates with the movement of rates.
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