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Leverage & Liquidity |
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BETTER LEVERAGE
Trading in the spot currency markets provides advantages over trading currency futures contracts. One of the main advantages for traders trading spot currencies is the margin rate or leverage that clients are given. In spot currency trading customer receive one low margin rate for trades done 24 hours a day. In currency futures trading the client has one margin rate for "day" trades and one margin rate for "overnight" positions. This can become a hassle for traders and decreases the overall tradability of the currency futures markets. Margin rates in spot currency trading vary from around 1% to 5% depending on the size of transactions a particular trader initiates. GFT's spot currency trading gives the customer one rate all the time, no hassles, and no margin calls. One rate so that the trader can manage their own risk efficiently and simply.
Without appropriate use of risk management, a high degree of leverage can lead to large losses as well as gains.
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24 HOUR LIQUIDITY AND NO RESTRICTIONS ON ORDER PLACEMENT
Foreign exchange is one of the few true 24-hour markets. When trading Forex, clients enjoy unparalleled liquidity 24 hours a day, 5.5 days a week. In many Futures markets the overnight access available to traders is simply put, "window dressing". The lack of liquidity and restrictions on what types of orders a client can place make trading and protecting positions a nightmare. |
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