JB Alpha provides access, assistance and advice for trading virtually every major currency in the world.
Advantages of Trading Currencies
Superior Liquidity in the Currency Markets
The global currency market is the largest market in the world, and has a daily trading volume that is larger than all of the world’s stock markets put together. No other market can compare with its liquidity and the narrow spread between the “buy” and “sell” offer. The reason for this is the sheer volume of currency trading that takes place by private traders, companies, banks and even governments.
A Fair Price
Because of the huge volume of currencies traded, the demand to buy and the demand to sell provides significant price stability in the spread between the “buy” and “sell”, especially for the major currencies. Currency traders can almost always open or close a position at a fair market price, which is a key advantage of currency trading.
24-Hour Currency Trading
Foreign exchange market trading occurs over a 24 hour period, starting on Monday morning in New Zealand, and ending around midnight on Friday in the USA. So, whether it’s 6 PM or 6 AM somewhere in the world, there are buyers and sellers actively trading foreign currencies, except over the weekend.
Virtually No Delay Between Breaking News and Market Response
Because the currency markets are so huge and “liquid”, currency traders can often respond to breaking news immediately.
Low Margin Requirements
The very low margin requirement for foreign currency trading allows a trader to control $100,000 worth of currency for only $1,000. This is a much lower margin requirement than for shares or futures. The substantial leverage available in the currency markets is essential because the average daily move of a major currency is less than 1%. Of course, there is inherent risk in trading any leveraged product or instrument, and all clients should be aware of the risks involved in trading leveraged instruments.
No Short-Selling Restrictions
There are no short-selling restrictions in currency trading. A trader can choose to trade a currency either up or down, depending on the position they have chosen.
For more information, contact one of our experienced currency advisors.