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BP Examiner, Hank Richards 
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As we mentioned in the article "The forex market vs stock market, there are certain virtues in the FX market make this a more attractive market for investors. In the first part we saw some of them now look other forex market.
Minor errors in execution of orders.
In general, while shorter the process to fulfill an order, the lower the probability of error. The online trading in forex market is a process that consists of three steps. An investor makes an order in which platform you are using, the house broker executes the order immediately, and finally, the confirmation is displayed by the investor. This process is met, usually in seconds. For an investor in shares, the order must meet at least five steps. Finally, the customer receives confirmation of his broker. Because the forex market, there is this chain of steps, the costs are lower and the possibility that a mistake has been committed prejudicial to any party.
Similarly, being a market where orders meet fewer steps, limiting the risk that the price at which the compliance order is different from the requested price. In the stock market, orders are executed at the best possible price resulting in the investor start or close a position at a price that is not favorable.
It is the perfect market for technical analysis.
For technical analysts, currencies rarely remain long in negotiation limited ranges and are more likely to develop strong trends upward or downward. About 80% of the volume traded is speculative and therefore the market often over-extended and then corrected to their average levels. Technical analysis works very well in the fx market and an investor-versed in this technique can easily identify new trends and when they arise, so that you will find multiple opportunities to enter and exit the market. The graphs and indicators are used by all professional investors participating in the forex market and the Japanese candle charts are common platforms for transaction. Many of the traditional indicators that have equal validity in the stock market. These indicators are the setbacks of Fibonacci, moving averages, RSI, MACD and levels of resistance / support, among others.
Investors who are making the transition from the stock market forex market these technical indicators to find that they can employ the same strategies that were used.
Reduced transaction costs.
The existence of lower transaction costs makes the forex market is quite attractive for investors. In the stock market, the investor must pay a commission or a spread. In line with the commission, the commissions can be of the order $ 20 per transaction, if an American. Positions of U.S. $ 100,000, the average cost for commissions can be as high as USD $ 120. The structure of Non forex market removes the commissions they charge for bags brokerage, which reduces the cost charged to these customers. Costs were further reduced by the efficiency created by the use of advanced technology platforms that allow investors to negotiate directly with the market maker. Because the market offers immediate liquidity 24 hours a day, investors receive a lower spreads and more competitive throughout the day. Investors in stocks are more vulnerable to liquidity events (not to sell or buy an action because there is no demand or supply) and therefore receive higher spread, especially if it is negotiated outside of market hours. Low transaction costs make the online trading in the forex market is the best option for short-term investors. For an active investor in the stock market that regularly traded 30 times a day, a commission of $ 20 could mean the end of the day cost of USD $ 600. This reduces significantly increases its profits or losses. These commissions are high and must be paid to a group of people that the transaction is carried out in addition to paying the fees they charge their members pockets. In the FX market, being decentralized, there are no such committees.
Custom Leveraging
While many investors know that greater leverage brings greater risk, investors are human beings and very few would reject an opportunity to achieve a profit with the money of another. The FX market is perfect for this type of investment offers the greatest leverage of any existing market. The vast majority of foreign exchange brokerage firms offer 100:1 leverage for regular accounts in the account and 200:1 smaller. Compared with the 2:1 leverage that is offered to the average investor in the stock market in United States, or 10:1 to large investments and you can see because the forex market is the choice for many investors. The deposit required for collateral leverage in forex market is not seen as a down payment to purchase an asset, as is often the case in other markets. He is seen as a repository of performance or to ensure protection against losses incurred. This is useful for short-term investors who need to improve their capital in order to gain quick profits. Leveraging is custom made. This means that the investor has a higher risk aversion can use a 10:1 or 20:1 leverage or do not take any leverage. However, leverage is a double-edged sword. Without proper risk management a high degree of leverage can lead to huge losses.
Wins in a market upward or downward
In the FX market, opportunities abound in both gain market upward or downward. Since currency trading always involves selling one currency and buying another, there is no structural bias in the market. Therefore, if an investor has long position in a currency, he will be automatically short in another. As a result, profits will always exist whether the market is up or down. This is different to the equity markets where investors prefer long positions to short the market at low investors tend to suffer more.
In the previous article we outlined some of the virtues of the market compared to the stock market fx. In this article we explore in detail some of them: FX market is open 24 hours a day, reduced transaction costs, and leverage personal gain in a market upward or downward.
The market is open 24 hours a day.
One of the main reasons why the forex market has become so popular is because investors can negotiate almost all day. Being open all day, gives you immediate access to the market and thus able to negotiate according to the political events and / or economic occurring around the world. This feature gives the investor the opportunity to choose the day or days you want to negotiate. It is no longer necessary to wait until the market opens, so if a significant event occurs the investor can react immediately. In the stock market would need to wait for the opening to take a position with the risk that the price has created a gap against the position held.
Additionally, many people who want to invest a full time job during the day. The possibility of trading for 24 hours is the most suitable for this investor. Throughout the day the market offers various opportunities for negotiation and that all markets are involved in this global market, from Asia to America. In the forex market, negotiate outside of work hours provides the same liquidity and spreads (the difference between the offer price and demand) that in normal hours.
The market opens on Sunday at 5:00 pm Eastern time to U.S. After the markets opens from Sydney, Australia, then Singapore and Hong Kong at 9:00 pm EST, followed by Frankfurt, 2:00 a.m. ET, and London, 3:00 am. At four o'clock the European market is fully open and close Asian markets. North American markets open at 8:00 a.m. on Monday, and European markets close at 11:00 a.m. ET. New York finally closed at 5:00 pm and the cycle begins again in Sydney.
The most active hours occurs when markets are open simultaneously, for example, Asia and Europe during the 2:00 a.m. and 4:00 a.m. ET, United States and Europe between 8:00 am and 11:00 am. During the time of crossing all the European and North American currencies are traded actively during the hours that most Asian currencies are traded are the GBP / JPY (British pound is the GBP), and AUD / JPY (AUD is the Australian dollar).
