Forex future trading

FinanceTrading / Investing

  • Author Nick Schultz
  • Published November 30, 2007
  • Word count 503

If one were to speculate and predict the price of commodities in the near future, it would be impossible to give the exact rate. Dealing with currencies is much more significant than dealing in futures. The only difference between these two is the other fees involved and the speed at which the results are declared. The Forex future trading market is said to be more liquid and known to give out better profits to the investors involved. The major advantage in this being there is no charge for commission and the investors can obtain any relevant data from either the agencies or the websites available. Since the markets are open round the clock and deal with currencies from various parts of the world, there is information being updated and tracked down every single minute of every single day.

Also in case of stock market, there are brokers who act as your proxy in dealing with the shares, and quoting prices whereas in Forex future trading there are no such middlemen and so that cost is eliminated adding to your profits, this way you save money and have more to invest. All these costs do add up and make a difference when one wants to invest more and look forward to higher rate of returns. Maintaining what is called a portfolio will come in handy when a person wants to get an idea about what their past investments were like and how much profit he made on each. This will be a sort of a tracker so he knows how to speculate for the futures and based on that will shell out funds.

In case of Forex future trading the investor will have a preview to the market as it has been and going by the Forex charts, he can predict how it will be and make a decision. It is not necessary that the trend will be right always and so the returns are likely to fluctuate as well. One must however keep note of the scenario and monitor the oscillations to be able to judge which way it is likely to swing. Even if it doesn't give good returns, it will atleast help in curbing the losses.

Even though there are no commissions or transaction fee charged, there is something called as a spread. This is basically the difference between the asking price and the bid price of a particular currency. Even if it is very low, one does end up paying more for that currency they want to buy as against the one they wish to sell away. This makes only a marginal difference inspite of which the Forex future trading is the most lucrative form of trading. The investors in the futures trading need to use their power of discretion while accessing information regarding the rates of other foreign currencies. Hence it can be concluded that dealing in futures is far safer than dealing with the stocks where the prices cant be determined and the market is far more volatile.

Nick Schultz is a Forex Trading expert who recently developed an eCourse that details a step by step process for success Forex investing. If you are interested in learning more about his "9 Steps to Better Forex Investing" eCourse and learning how to make greater profits from your Forex Trading, please go here right now! : [http://www.forexinvestingcourse.com](http://www.forexinvestingcourse.com)

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