Spot Forex: Forex vs. Other Markets
Trade the World's Largest Market
With more than a decade of experience as a forex dealer, GFT offers traders the market access and tools that were once only available to large banks and corporations. Today, individual traders in Singapore and around the world have discovered the advantages of trading forex.
Market-makers like GFT allow individuals and smaller companies to trade on the same rates and price movements as the large players who once dominated the market. With GFT, nearly anyone can begin trading forex with as little as USD $200. Trading foreign exchange on margin carries a high level of risk, and may not be suitable for all investors. The high degree of leverage can work against you as well as for you.
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Spot Forex Market |
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| Market hours are limited because they are dictated by the trading schedule of the exchange and local time zone. |
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Because of the overlap of major financial markets and decentralised clearing houses, the forex market is open 24 hours a day, 5.5 days a week, creating trading volume through the day and overnight. |
| Liquidity can be greatly diminished after traditional market hours, as fewer traders participate or move to other markets. |
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The forex market is the most liquid in the world, eclipsing all others by comparison. Exchange activities remain constant because currencies are the basis of all world commerce. Trading volume - particularly in the majors - often stays high during "slow times." |
| Traders may be charged a variety of fees, including commissions, platform and charting fees, clearing fees, exchange fees and government fees. |
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When you trade spot forex with GFT, all you pay is the spread, which is built into the buy and sell prices.. |
| May require large minimum starting capital - often as high as USD 50,000 - along with high margin rates. To take a position, you may be required to front a margin that's as much as 50 percent of your capital. |
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When trading spot forex, you can leverage your capital - as high as 100:1 - with a consistent margin rate 24 hours a day. Note: Without appropriate use of risk management, a high degree of leverage can lead to large losses as well as gains. |
| Restrictions on "short selling" and stop orders. |
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In spot forex, trading consists of simultaneously buying one currency while selling another, so there are no restrictions on short selling (placing a sell order when you think the market may trend down).
To help manage your equity and risk, GFT offers multiple order types, including stop orders, trailing stops and guaranteed stops.
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