The forex
market is approximately 46 times larger than the combined world futures
markets. Greater day-to-day price stability enables trades with higher
leverage than what is typical with futures.
>> Forex Provides More Leverage
You control the degree of leverage you wish to employ in trading. TSD automatically sets your leverage level at the most
lenient requirement, based on the size of your account. As an example,
a US$30,000 account has a margin requirement of US$2,000 for every position
held that is approximately equal to US$200,000 worth of currencies. At
this account level, 1% of the total value of the currency traded is required
to be maintained on margin a leverage ratio of 100 to 1.
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>> Forex Provides Less Liability
TSD gives investors important peace of mind in
the volatile currency marketplace. If the funds in an account ever drop
below margin requirements, any open positions will be closed, protecting
the account from catastrophic losses. In the event that your strategy
proves to be wrong and there is a significant move against you, your
liability will never exceed the value in your account.
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>> Forex is Maximum Liquidity
The forex market is the largest and most liquid in the world, with the
spot foreign exchange market accounting for on average US$1.5 trillion
in transactions every day. The foreign exchange market can absorb transaction
sizes and trading volumes that dwarf the capacity of other markets.
Stop-orders and liquidation of positions are executed without slippage.
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>> Forex Trades 20-Hours a Day
Forex trading is your window to the world economy. Trading starts on
Monday at 00:00(GMT) with the opening of the markets in Singapore and
Sidney. A couple of hours later, the Tokyo market is open. Next is London.
By the time the day catches up to New York, the world currency markets
have been at work for fifteen hours. You determine the timing of your
trades, reacting instantly to any news or market pressures.
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>> Forex is Firm Prices and Instantaneous Execution
TSD enables price certainty and instant execution
on orders up to US$1 million. Your trading is based on real time streaming
currency prices so there is no discrepancy between the offered price
and the execution price. This remains true even during volatile, fast
moving trading sessions. Streaming prices ensure that your orders, stops,
and limits are executed without partial fills or slippage.
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>> Forex Enables Automatic Rollovers
With TSD, open positions are automatically rolled
over every two days. At 5:00 PM Eastern Time, your account automatically
rolls over any open positions, swapping the trade forward to a settlement
date two business days in the future. Rolling over a position does include
some carrying costs, which is true with futures as well.
Rolling over a Forex position can sometimes make you money, since carrying
cost is determined by the difference between interest rates for the
two currencies. If you are long in the currency with the higher interest
rate, you can gain on the spot rollover from the premium relationship
of the long currency relative to the short currency. Gain is determined
by the differential between the interest rates of the two currencies,
and fluctuates with the movement of rates.
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