English - Español -Portugues - Deutsch

ALL or NONE: A limit price order that instructs the broker/dealer to fill the whole order at the stated price or not at all.

Forex Terms

ALL or NONE - ARBITRAGE -  ASK - AUTOMATIC EXECUTION - BASIS POINT - BID - BROKER - COST OF CARRY - COUNTERPARTY - ENTRY ORDER - FOREX - FOREX TRADER - LEVERAGE - LIMIT ENTRY ORDER - LIMIT ORDER - LONG POSITION - LOT - MANUAL EXECUTION - MARGIN - MARGIN CALL - MARKET MAKER -  MARKET ORDER - MINI ACCOUNT - OCO ORDER - OVERNIGHT - PEGGING - PIP or POINTS - POSITION - PREMIUM - QUOTE BUY SELL - ROLLOVER -
SHORT POSITION - SLIPPAGE - SPOT FOREIGN EXCHANGE - SPREAD - STOP-ENTRY ORDER - STOP-LOSS ORDER - SWAP - TICK - VOLATILITY -
WHIPSAW - WHISPER NUMBER

The global foreign exchange market is the largest, most active market in the world. Trading in the forex markets takes place nearly round the clock with over $1 trillion changing hands every day. It is the main event.

If you are interested in trading currencies online, you will find that the Forex market offers several advantages over equities trading.

24-Hour Trading

Forex is a true 24-hour market, which offers a major advantage over equities trading. Whether it's 6pm or 6am, somewhere in the world there are always buyers and sellers actively trading foreign currencies. Traders can always respond to breaking news immediately, and P&L is not affected by after hours earning reports or analyst conference calls.

After hours trading for U.S. equities brings with it several limitations. ECN's (Electronic Communication Networks), also called matching systems, exist to bring together buyers and sellers - when possible. However, there is no guarantee that every trade will be executed, nor at a fair market price. Quite frequently, traders must wait until the market opens the following day in order to receive a tighter spread.

Superior Liquidity

With a daily trading volume that is 50x larger than the New York Stock Exchange, there are always broker/dealers willing to buy or sell currencies in the FX markets. The liquidity of this market, especially that of the major currencies, helps ensure price stability. Traders can almost always open or close a position at a fair market price.

Because of the lower trade volume, investors in the stock market are more vulnerable to liquidity risk, which results in a wider dealing spread or larger price movements in response to any relatively large transaction.

Profit Potential In Both Rising And Falling Markets

In every open FX position, an investor is long in one currency and short the other. A short position is one in which the trader sells a currency in anticipation that it will depreciate. This means that potential exists in a rising as well as a falling market.

The ability to sell currencies without any limitations is another distinct advantage over equity trading. In the US equity markets, it is much more difficult to establish a short position due to the Zero Uptick rule, which prevents investors from shorting a stock unless the immediately preceding trade was equal to or lower than the price of the short sale.

Foreign Exchange (FOREX) or Currency Trading

U.S. & International Markets: Futures and Options

International (non U.S.) Futures and Options

 

Market	Exchange
3 Month Euribor & 3 month Euribor options	MATIF
90 Day Australian Bill & 90 Day Australian Bill options	SFE
CAC 40 Index futures	MATIF
Aluminum futures & options	LME
1 Month Euribor futures	Eurex
3 Month Euribor futures & 3 month Euribor options	Eurex
Euro-Schatz futures & Options on Euro-Schatz futures	Eurex
Euro BOBL futures & Euro BOBL options	Eurex
Euro Bund futures & Euro Bund options	Eurex
Euro BUXL (long bund) futures	Eurex
Conf Swiss Bond futures	Eurex
DJ Stoxx futures	Eurex
Finland's FOX index futures and Fox Options	Eurex
Nemax 50 index futures and Nemax50 Options	Eurex
Euro Notional Bond futures & Notional Bond options	MATIF
Euribor Interest Rate futures & options	LIFFE
Euroyen futures & options	SIMEX
FTSE 100 Index futures & options	LIFFE
Hang Seng futures  & Hang Seng options	HKFE
Italian Bond (BTP) futures & options	LIFFE
Long Gilt futures & options	LIFFE
Nickel futures & options	LME
Nikkei Index futures & options	SIMEX
All other LME contracts	LME
Sterling futures & options	LIFFE

List of Offshore Bank