Advantages of Forex

The Most Liquid Market On The Planet

According to the Central Bank Survey of the forex market conducted by the Bank for International

Settlements, as at 2004, daily trading volume reached an all-time record high of $1.9 trillion, up

58% from 2001. Do you know that this humongous daily trading volume is about 20 times that of

the New York Stock Exchange and the Nasdaq combined?
With about 80 percent of foreign exchange transactions having a dollar leg, you don't have to

worry about liquidity issues when trading any of the these big-economy currencies, which are

namely, USD, GBP, Euro, CHF, JPY, CAD, AUD and NZD. However with stocks, futures, options or

commodities, you tend to be restricted by their illiquidity especially during after-hours.



Limited Slippage
Most brokers guarantee fills on stop-loss and limit orders on up to a certain number of standard

lots, and provide instantaneous trade executions from real-time quotes which are displayed on the

screen. There is usually no discrepancy between the displayed price and the execution price during

normal market conditions. However, you may be subjected to slippage when you trade during

news or during periods of high volatility.

In the futures and stock markets, execution price can be vague because all orders must be done

through the exchange, and slippage and partial fills are common especially in the futures market

due to the chaotic open-outcry system.