FOREX vs. Futures
Not very different than FOREX technical indicators, in futures things aren't very simple. In order to simplify things we'll say that Speculators hope to profit by the daily fluctuations in the futures market by buying long (from the buyer) if they expect prices to rise or by buying short (from the seller) if they expect prices to fall...
The foreign exchange market has several advantages over the futures market.
FOREX technical indicators is a more liquid market - as the largest financial market in the world it dwarfs the futures market in daily exchanges. This means that stop orders can be executed more easily and with less slippage in the currency market.
The currency market is open 24 hours a day, 5 days a week. Most futures exchanges are open 7 hours a day.
This makes FOREX technical indicators more liquid and allows traders to take advantage of trading opportunities as they arise rather than waiting for the market to open.
Transactions are commission-free.
Brokers earn money by setting a spread - the difference between what a currency can be bought at and what it can be sold at. In contrast, traders must pay a commission or brokerage fee for each futures transaction they enter into.
Because of the high volume of trading FOREX technical indicators transactions are almost instantly executed. This minimizes slippage and increases price certainty.
Brokers in the futures market often quote prices reflecting the last trade - not necessarily the price of your transaction.
The FOREX technical indicators are less risky than the futures market because of built-in safeguards in the trading system.
Debits in futures are always a possibility because of market gap and slippage.
