The Forex market is the largest trading market in the world. By a lot. It sees roughly $4 trillion in volume daily, compared to about $28 billion at the NYSE.

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Chapter 2:
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WHY CHOOSE F OREX OVER O THER MARKETS?
Forex is the world’s largest market, but why is it right for you?
The Forex market is the largest trading market in the That means the Forex market has the least
world. It sees roughly $4 trillion in volume daily, slippage of any market out there . That saves you
compared to about $28 billion at the NYSE. All
money right there. Not only are the fills better, but
American stock market trades come in under $200
spreads (the costs of your transactions with the market
billion in daily volume. The Futures market operates at
maker) are lower than in other markets.
around $440 billion a day. Add everything up, along
with the rest of the world’s stock markets, and you still
Another major benefit is the lack of commissions. You
don’t come close to the money moving around in the
don’t have to pay two brokers and one market maker like
Forex market on a daily basis.
in more traditional stock market trading. Instead, you
pay the spread to one market maker, and that’s it. That
So, why is all that money moving around a benefit to you?
means that every trade you make in Forex is saving you
Because it means better fills on each order you put in,
money compared to trading in other markets, regardless
meaning less slippage. Slippage refers to when you
of whether you win or lose in the actual move.
attempt to purchase a market item at a given price but
see your actual purchase made at a different price
The Forex market is also open 24 hours a day, so
because the market moves before your order is filled.
you can trade from anywhere at any time. That
When there’s more volume, slippage happens less often.
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gives you all kinds of flexibility, and we know that’s a ruined thinking about rushing to get your trade in at the
major advantage in any business transaction. Stocks can first bell on Monday morning.
only be traded 6.5 hours daily from Monday through
Friday. The Forex market is open 24 hours a day from Lastly, there are no restrictions on short selling in the
Sunday evening through Friday evening. That means you Forex market, opening up a lot of freedom for traders.
don’t have to trade during work, when your focus is American markets don’t want their stocks shorted, so
divided. Obviously focusing 100 percent on what you’re they make it more difficult to do so. The Forex market
doing will help you earn more money in the long run. doesn’t work that way. If you want to sell or buy with
your own prerogative, it’s up to you. You don’t need to
One other note of interest: when major enlist the help of a firm to try to find “shares to borrow”
announcements are made, you can react to them as in the stock market, and there are also no “uptick
rules.” This is pretty much common sense because when
immediately. In the stock markets you often can’t until
you’re trading one currency for another, the whole point
a couple of days later. With Forex your weekend won’t be
is that one will appreciate and the other will depreciate.
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