Forex Verse Commodities
Forex is an exchange of currencies that done on a twenty-four hour and five days a week basis. Currencies or traded from one country to the other country through broker for the banking industries.
The advantage of the Forex is that it setup for the average investor to learn how to do. On the other hand the commodities investor has to go directly to a middle man.
To control a contract you go to your broker and place an order then he or she send it off to the main brokerage house that end return sends it to one of the exchanges. ( getting a little confusing by now) That just the start there’s still more next the exchange sent it to the floor.
All this is still twenty to thirty min after you see the charts or the quotes. Because unless you’re a broker charts and quotes are delay somewhere between fifteen to thirty min. All commodities program run that far behind, in that time the way the market run you could loose from one point to thirty points in that fifteen to thirty min. I’ll use the soybean market as an example . The soybean normally has a thirty point per day limit . At fifty dollar a point that fifteen hundred if you are on the wrong side that hurts.
Now you may think that little far fetch but in the soybean market that happen three or four time a week. So you see that the commodities can be very risky. Another then you need to know is with commodities market if you are on call and your still end the contract, the market goes down more you still loose more.
If your account goes deftness your on margin call. You got three days to makeup the different or the contract is sold. If you got less money in your account then require, then
they want the margin money now and I mean now. You do have till the next day at open bell, but that all. What that mean is any money in your account is there. If you owe five dollars and you had four in your account you still owe the broker one dollar. The point is you can loose a lot of money in the commodities market real quick. This could all take place in that fifteen to thirty min. time frame. Unless you’re standing in the trading floor you don’t know the price till it to late. There ways to foreseen and to protect your money. That would take another whole book or more just to explain.
The Forex is electronically traded, you control want you want to do. You set at your computer and download a software program from your broker and your off and running. That sounds to easy to be true put to compare with commodities it almost that easy. With the Forex you have the control not the broker, not your banker, not your investment guru just you.
The key to anything in life is that your can learn a few strategies that well lot you know want to look fore. The easy and the best way to learn is off of someone else that has studed all the different strategies and learn from there mistakes.
The advantages of Forex over commodities is that you are the one that's in control the trade. That mean that you control went you get in and out on a trade and I am not saying that you control the market itself. You can’t control which way the market going to move you can control went you get in or out.
To learn the strategy of the Forex I am talking about go to.
http://www.myamazingforex.com
