Tag Archives: Spot

Forex Trading Articles

Spot in Forex Futures

There is always a fight on the issue of Forex future and Forex spot that which one is better to trade at but as usual no satisfactory results because every individual has its own logic to prove his/her point correct and nobody else can falsify others logic.

In this discussion, we are not considering the points of leverage, guaranteed returns and expiry of the contract. The points that are mentioned will help to recognize whether the Forex future is a good alternative to trade or Forex spot.

Trading hours: Some Forex spots propagate that they are the only place that provides twenty-four into seven hours trading. However, this is not at all true as both Forex future and spot twenty-four hour a day and five days a week. The Forex trading market remains closed from Friday afternoon to Sunday afternoon in North America. So, this point is dropped for further discussion as the time limits are same for both the concerns.

Forex spreads: The spread rate is not fixed in Forex futures and it may be from one pip or lower and sometimes it becomes negligible depending upon the market volatility. In Forex spot, the spread is variable but it varies with wide range around 2-3 pips or more in some major currencies. However, the advantage of spreads can be fetched in Forex futures trading.

Commissions: The Forex spot dealers do not take commissions because they can make money from spreads that is why spots are greater in forex spreads as compared to futures. The Forex future dealers take average commission of around 3.15 USD on per entry and exit that is equal to 6.30 USD each contract. Thus, there is no need to pay commission in Forex spot trading.

Flexibility: The Forex spot dealers have more volatile lot sizes. The Forex future has two defined lot sizes. The full-size spot contract usually has a bigger lot of around 100K in the Forex spot market and a mini contract is equal to the half of the full-size spot contract. The bigger lot sizes can make money management very difficult and this makes it an advantage of spot Forex trading.

Thus, there are some advantages and disadvantages remain attached with both the type of Forex contract of future or spot.

The article puts forth the advantages and disadvantages of the Forex trade contracts of Forex futures and spots to make it easy to differentiate that which one is better to trade with at the trading platform.

Forex Trading Articles

Understanding The Difference Between Currency Futures And Spot Forex Trading

Forex is the largest market in the world in terms of the total cash value traded. Any person, company or country may participate in the market. Forex investors may engage in currency futures as well as trade in the spot forex market. The difference between these two investment options is minor as explained below.

The introduction of Forex futures occurred at the Chicago Mercantile Exchange in 1972. Forex futures also referred to as currency futures serve two primary purposes as financial instruments. First, they can be used by companies or individuals to remove the exchange rate risk inherent in international transactions. Second, they can be used by investors to speculate and profit from currency exchange rate fluctuations.

With currency futures, the price is determined when the contract is signed and the currency pair is exchanged on the delivery date, which is usually sometime in the distant future (typically no more than 3 months). However, most participants in the futures markets are speculators who opt to close out their positions before the settlement date.

In the spot FX, the price is determined at the point of trade, and the physical exchange of the currency pair takes place right at the point of trade or within a short period of time thereafter (the standard settlement timeframe for foreign exchange spot trades is 2 days from the date of trade execution). Forex trading is not conducted on a regulated exchange. It is referred to as an over-the-counter (OTC) transaction. For example, whenever someone goes to a bank to exchange currencies, that person is participating in over-the-counter (OTC) trade.

Whether you decide to jump right in to spot FX or want to speculate a little, the Forex market offers countless opportunities with unlimited risk.

Contact a Spot Forex management and investment research firm who specializes in providing investors alternative market opportunities that diversify portfolio risk. Forex indicators help identify attractive investment opportunities in any economic environment. Use forex strategies to designed or reduce capital draw down that can occur in the extremely volatile Forex market.

General Forex

Spot Price of Gold What Factors Are Driving It

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Eldora Resources Tips: The spot price of gold may seem mysterious at first, but this is not the case when you understand what factors drive the market price of gold. At the most basic the answer is supply and demand, but this answer is very simplistic and there are other factors involved as well. In the last few years the cost of gold as investment has increased significantly, and the factors driving the demand also need to be addressed. The recent global economic recession left many investors distrustful of the usual markets, and that caused them to turn to gold bullion and other precious metals instead.Gold bullion coins and bars have historically been a good investment in rough economic times, and still are today.Please be aware that there are scams and fraud at large claiming to offer services and other resources are not owned/endorsed by either e-gold.

Tips and reasons to invest below to avoid scams and other fraudulent transaction on the web.
Because many investors started buying 1 oz gold bullion and other forms of this metal this drove up the demand for it. In addition gold is used in manufacturing and other industries, and this also increases the demand that this precious metal has. As the demand increased the spot price of gold also went up, and other precious metals followed for the same reasons.Technically the spot price of gold is determined by the supply and demand factors, but the underlying reasons for this demand also need to be evaluated so you can make the best possible investment decisions.

Currency devaluation can also cause the spot price of gold to go up. Many investors use the foreign currency exchange to invest, but when currency values fall many Forex investors turn to precious metals, including gold 9999 pure.

This is also true in other sectors, because gold and other metals have always been viewed as safe and reliable regardless of economic or political factors that often affect other investment choices. There are many factors that are used to determine the spot price of gold, and all of them will have an impact on the market and the value of this and other precious metals.

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Forex Trading Articles

What Is Spot Forex Trading – Spot Forex Trading and Forex Futures Trading

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What Is Spot Forex Trading

Many people are confused about the differences between spot forex trading and forex futures trading, and while much of this confusion is grounded in reality, the truth is that there are only a few slight differences between the two methods. Both futures and spot essentially give the forex trader the ability to secure a particular position at some future date and time that is established with the writing of a particular contract.

With forex futures the actual exchange of currency doesn’t happen until the actual preset date and time that was revealed within the contract, and with spot forex the exchange of currency happens when the contract is established. This is the primary difference between the two methods, and it essentially has some significant consequences in the ways various traders use both futures and spot as part of their overall trading strategy. What Is Spot Forex Trading

Because the contract and the trade of currency happens at pretty much the same time with spot, the actual trading positions that are created are not often held onto longer than about a day. This essentially makes spot a short-term technique that if used wisely can increase your leverage points, but only at the expense of being very active within a particular market. The majority of people that utilize futures will not follow-through with the exchange of currency on the actual date and time that is setup with the initial contract, and the majority of traders who use futures are ultimately speculators who don’t ever have any real intention of making any real trades.

Both spot and futures can give a trader an increased amount of leverage if they are implemented correctly, and while many traders like to think that they are using these techniques the right way, many are purely playing games. The best way to learn how to use both spot and futures correctly is to study some real-world examples so that you can see how some of the more skilled traders are actually making money with both methods. Doing this will ensure that you don’t waste your time implementing each one of these without an overall strategy, and hopefully you will then begin to make more money. What Is Spot Forex Trading

Forex Trading Articles

Spot Forex Management Sarl – Forex Trading Basics For the Rookie Trader

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Spot Forex Management Sarl

Forex Trading is very popular nowadays because it allows a person to trade from anywhere and everywhere in the world. In order to do Forex Trading you don’t need to possess any kind of diploma, license, proof of study, etc.

The business of Forex Trading is very economical and the costs involved in the start-up of this business are very low. Forex Trading requires you to open a Forex account that costs as little as $200. Although there are lots of Forex Trading firms available today, I personally recommend Fenix Capital Management as it offers a state-of-the-art Trading Platform. The platform of Fenix Capital Management allows you to directly place orders by just a click on the charts.

Some of the major benefits of trading in the FX spot market are as below:

There is no commission fees involved
Trading is possible 24 x 7
The leverage with which you can trade is as high as 400:1
A lot of advanced features including Live Charts and Free Streaming executable price quotes are available

There are two types of Forex trading involved – namely Cash Forex or Spot Forex and currency features. As a Forex Trader, it is very important for you to understand the difference both of these. Spot Forex Management Sarl

Spot Forex allows you to electronically trade up to 10 Million dollars. The end of the business day marks the closure of the futures market. In case the overseas market releases important data post the closure of the business day, the next day morning can spell quick doom in case the direction of the announcement is not in your favor. The Spot Forex market continuously runs between 7:00 AM New Zealand time Monday morning till 5:00 PM New York time Friday evening.

Forex traders in the major Forex trading centers such as Geneva, Sydney, Tokyo, London, Hong Kong, Singapore, New York, Toronto, etc, ensure that the liquidity migration from one time zone to another is as smooth as possible. While currency futures trade in non-USD denominations only, Spot Forex allows the trader to transact in any type of currency and in any denomination.

The currency futures suffer from sporadic lulls even during regular International Money Market timings and is marked by constant huge price gaps. However, there are quite a few risks involved in currency trading. Currency trading is suitable for only those individuals and institutions that can sustain the potentially high level of losses that can result sometimes from currency trading. Since the currency trading feature allows you to trade at the maximum leverage of 400:1 ratio, even a single percentile decline or loss might cause you to lose the entire investment. Spot Forex Management Sarl