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How is FX trading different from stocks or futures?

April 26, 2017different Futures FX stocks trading

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How is FX trading different from stocks or futures?

1 Answer

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Forex trading features deep liquidity, high leverage, and extended market hours. With stocks, the maximum leverage is 2:1 but forex trading on the TradeMavenFX trading platform allows up to 100:1 leverage in certain pairs depending on order size. There are also no commissions, brokerage fees, exchange fees or government fees (brokers are compensated through the bid/ask spread). Forex trading differs from futures trading in that there is no fixed lot size. In the futures markets, lot or contract sizes are determined by the exchanges but in spot forex you can trade lots as small as 10,000 units of currency.