Forex Vs Futures
Higher Volume = Best Liquidity
As we have said Forex is the market with more volume, which already operates daily 2 trillion dollars. This market can absorb the volume that daily operation. While the futures market operates approximately 30 billion dollars a day. But nothing compared to 2 trillion dollars.
That is why the futures market has a limited liquidity while the Forex market always has liquidity, which tells us that sales or purchases can be settled at any time or stop loss can jump without affecting the market in volatile markets market.
It must be said that Forex is 46 times bigger than all the combined Futures Markets.
24 Hour Market
Precisely this is a major disadvantage with regard to Forex Futures. The forex market is a market of 24 hours off, but the futures market is a market for 7 hours. Therefore Forex operators have the ability to react to news that arise elsewhere while Futures traders have to wait for the opening of the meeting.
| Advantage | Forex | Futures |
| 24 Hour Market | YES | NO |
| No commision | YES | NO |
| Instant Execution | YES | NO |
| Leverage to 400:1 | YES | NO |
| Known Price | YES | NO |
| Limited Risk | YES | NO |
No Commisions
Transactions are no commissions. The Broker earns money of the spread that the broker provides. The intemediare is eliminated and that the transactions were made via online through the platform provided by the broker. Logically the broker assumes the spread, which is the difference between the bid / ask.
While in the Future is paid a certain commission to the broker.
Known Price, Instant Execution
In the forex transaction is the price that the trader see at the moment, order is executed instantaneously under normal market conditions.
On the countrary in Futures is not executed immediately. Sometimes the price does not reflect the current market price, but the price of the final purchase price will not be that which is necessarily buying.
Limited Risk Guarantee
In Forex, traders can limit their risk of losses. Forex The risk is minimized by the platform to automatically generate a margin call if the margin required exceeds the available capital in your account.
In Future losses are always a possibility, so that a position can be closed with losses and therefore may have a deficit in your account.