Advantages
of the Forex Market Forex
- Forex
Market is open 24 hours a day.
- The
most liquid market in the world.
- 100-to-1
leverage reduces the need for large amounts of capital.
- Commission-Free*
-
No restrictions on shorting which allows you to enjoy profit opportunities during
any market condition.
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Over
the last three decades the foreign exchange market has become the world's largest
financial market, with over $3.0 trillion traded daily. The primary market for
currencies is the 24-hour Interbank market. The Interbank market literally follows
the sun around the world, moving from major banking centers of the United States
to Australia and New Zealand to the Far East, to Europe and finally back to the
United States. Until recently the Forex market has not been easily accessed by
the small speculator. With the large minimum transaction sizes and often-stringent
financial requirements, banks, hedge funds, major currency dealers and the occasional
high net-worth individual speculator were the principal participants. These large
traders were able to take advantage of the many benefits offered by the foreign
exchange market vs. other markets including liquidity and the strong trending
nature of the world's primary currency exchange rates. As a primary market maker
in foreign exchange, RJO FX is able to offer smaller transactional sizes and allow
traders of almost any size, including individual speculators, the opportunity
to trade at the same rates and price movements as many larger players might. The
Forex market removes the traditional barriers that exist in other markets that
restrict a traders ability to make a trade at the right times. Some examples include:
|
| Other
Markets | Forex
Markets | | Limited
floor trading hours that are dictated by the time zone of the trading location.
This factor significantly restricts the number of hours a market is open on any
given day. | The
Forex market is open 24 hours a day, 5.5 days a week. Because of the decentralized
clearing of trades and overlap of major markets in Asia, London and the United
States, the market remains open and liquid throughout the day and overnight | | Threat
of liquidity drying up after market hours or because many market participants
decide to stay on the sidelines or move to more popular markets | Most
liquid in the world eclipsing all others in comparison. Most transactions must
continue, since currency exchange is a required mechanism needed to facilitate
world commerce. | | May
incur one or all of the following: commissions, clearing fees, exchange fees and
government fees. | Commission
Free -- RJO FX acts as the counterparty each transaction and as a liquidity provider
to its clients using it's access to the inter-bank market. In doing so, RJOFX
assumes the risk associated with such a transaction. A portion of RJO FX's profitability
may be the difference between the bid and the offer provided to the client, as
well as its ability to offset any risk transferred to RJO FX by its clients. | | Large
capital requirements, high margin rates and many restrictions. | One
consistent margin rate 24 hours a day allows Forex traders to leverage their capital
more efficiently with as high as 100-to-1 leverage | | Short
selling and stop order restrictions. | None.
| | Pattern
day traders subject to restrictions requiring account balances in excess of $50,000 | No
restrictions. Very low account balances. |
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