Forex vs. Futures

The global foreign exchange market is the largest, most active market in the world. Trading in the forex markets takes place nearly round the clock with $1.9 trillion changing hands every day. It is the main event. The benefits of forex over currency futures trading are considerable. The dissimilarities between the two instruments range from …

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Forex vs. Equities

If you are interested in trading currencies online, you will find that the Forex market offers several advantages over equities trading. 24-Hour Trading: Forex is a true 24-hour market, which offers a major advantage over equities trading. Whether it’s 6pm or 6am, somewhere in the world there are always buyers and sellers actively trading foreign …

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Calculating Profit and Loss

For ease of use, most online trading platforms automatically calculate the P&L of a traders’ open positions. However, it is useful to understand how this calculation is derived. To illustrate a typical FX trade, consider the following example. The current bid/ask price for EUR/USD is 1.2320/23, meaning you can buy 1 euro with 1.2323 US …

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