Difference Between Forex and Futures, Comparison Forex Vs Futures

Difference Between Forex and Futures, Comparison Forex Vs Futures

There are several financial markets in which to invest in order to earn much higher returns than keeping the money in a savings account or fixed deposits. Some markets, such as the money market or a traditional bond market, may not always have double-digit returns. However, there are some markets that can provide you with double-digit returns on your investments, and this article will compare a few of them.

The Forex Market, also known as the FX Market by some, is one of those markets where you can make double-digit returns. In the Futures market, you can also make double-digit returns. There are significant gaps between the two markets, and you should be aware of them before entering either

Some of the benefits of Forex Trading over Futures Market

  • Liquidity
  • Trading Timing, 24 Hour Trading
  • Trade Execution
  • No Commissions
  • Greater Leverage
  • Limited Risk is Guaranteed


Forex Trading has the advantage of being the most liquid market, including the Futures Market. There is no comparison, with the total daily volume in the Forex Market approaching $2 trillion and the daily volume in the Futures Market approaching $30 billion. Foreign Currency Trading (Forex) has much more liquidity than the Futures Market. This means that when it is time to sell, Forex Trades can be much easier to fill than Futures Trades.
This increased pace implies a higher possible benefit. When you combine this with instantaneous trade execution in Forex Trading, you have the ability to make a large number of trades efficiently.

Trading Timings:

Another benefit of the Forex Currency Trading System (Forex) over Futures is the ability to trade 24 hours a day, five days a week if desired. The Forex market is open for the long and for the most hours of the day. If an individual is serious about making money in a market, having nearly infinite time per week to make such trades would be ideal. Whenever an event occurs somewhere in the country, you will be among the first to capitalise on the situation. There will be no need to wait for a market to open in the morning. You can transact instantly from your phone or computer.

Limited Risk is Guaranteed:

Since Forex Traders are required to have position limits, the risk is minimised because the online capabilities of the Forex Trading system immediately execute a margin call when the margin number exceeds the account value in dollars. This prevents a Forex trader from risking too much money if their stance goes against them. It is a useful security function that is not always present in other financial markets.

Trade Execution:

When you use a Forex Currency Trading System, you get trade executions immediately. There is no lag, as there might be in the futures or equity markets. And instead of guessing at which price your order could be filled, your order is filled at the best possible price.

No Commissions:

Forex or FX trading is commission-free since it is an inter-bank market that instantly connects buyers and sellers. As in other countries, there are no middleman brokerage commissions. The spread between the offer and ask price is where Forex trading companies make their money. This means that when you sell Forex, you can save money relative to futures markets, where fees are usually charged.

Forex Vs Future Leverage:

Online Forex Trading gives you much more leverage than the Futures Market. However, in the Futures Market, you can also buy and sell futures options, increasing your leverage. When you know what a currency is going to do, leverage can be very useful. Forex trades will yield 200:1 or more, while futures trades yield much less. Again, if you make the right decisions, this means a lot of future benefits.

When comparing the distinctions between Forex Trading and Futures Trading, keep in mind your favourite trading style as well as the type of risk you are willing to take. There are distinct benefits to FX trading that can cause you to benefit significantly if you develop a good strategy and stick to your trading limits. If you’re ready to go, open a Forex Trading Account now

Learn More

Link: Best Hour to enter Forex Market

Link: How to earn money with forex trading


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