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Spot Forex Market

Written by ForexCult Team
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Spot Forex Market In this article, you will be able to learn the difference between the spot forex market and the currency future market. The spot forex market is just one of the many different ways that you are able to actually trade forex. It is for certain that the forex market is known to be very well trended and that the liquidity levels are among the highest not to mention that there are insiders and the cost of transaction is definitely the lowest. However, you before you make a decision, it is very important that you are aware of the risks that are actually associated with the trading of currency futures as well as the spot forex market trading. I hope that this article will be very informative when it comes to distinguishing the difference between the spot forex market and the trading of the currency futures. Why the Spot Forex Market? Currently, it is most popular for you to choose the spot market because of the fact that due to the facts these days that is what the majority of the people are doing and they have good reasons for doing so. The number one reason that most of the people who are located in the spot market are because of the trading costs which are known to be low. However, the difference between the two is mainly that there is a difference in the way that the pairs of currencies are quoted. This is the main reason that most traders are known to pack their bags from the currency futures and move their way to the spot forex market. You should know that there are a couple of reasons behind this particular action, the first reason that the traders have said is that the spot forex market is better at providing a better level of liquidity and also offers lower transactions cost. Not to mention that when it comes to the spot forex market that the banks and brokers that are involved with the spot forex market are able to provide you with quotes twenty four hours a day. Needless to say another reason that the spot forex market is preferred more is because of the fact that the spot forex market is not incurred with exchange fees as well as NFA fees, which are normally passed to the customer when there are high commissions. The Spot Forex Market and the Mechanism You will find that the actual mechanism of the spot forex is sort of similar to that of the currency futures trading. However, keep in mind that the major difference is the way that the pairs of currencies are quoted in general. When it comes to currency futures you will see that the currency is always up against the USD. Whereas some of the markets will put the USD up against another currency, it really all depends on what market you are dealing with. Now that I have gave you what is known as a basic overview of the spot market, I would like to go over a couple of things before I end this article because I still think that there is some information that you are going to need to know. The first thing that I would like to tell you is that the spot market is also known as the cash market. In this market you will find that the goods are sold for a cash amount and then they are delivered immediately. If there are contracts on this market that are bought as well as soon, they are coming into effect immediately there is no delay. It is known that the spot markets can also operate wherever that is an infrastructure that exists so that they are able to conduct the transaction. For most security reasons, the spot market only take place on the internet primarily. When it comes to spot forex there is also a two day date that the goods should be delivered, this is relying on the number of days that it would take to move the money from one bank to another bank. I hope that all of this information has come to a help to you in your trading, I know that it may be a hit and miss article and that there may be a couple of things that I may have left out but if you feel that there is more information that you need, all you do to do is get online and take the time to look it up.

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Which is the Best Forex Broker you have traded with?

Interview with Matthew Sheppard

Senior Forex Advisor at XForex


1. What is your name and position?

Hello, my name is Matthew Sheppard and I am a senior forex advisor at XForex.

2. What is your experience and professional background?

In the last 6 years I had filled several positions in financial institutions such as a stock broker, a foreign exchange desk manager, a financial consultant and in my recent role I serve as a senior Forex advisor for XForex which is an online forex company.

3. What type of clients you deal with?

We deal with clients on all levels from the beginning stages to the more advanced trading levels.

4. Does most of your business activity come from the online or offline world?

Because of our high presence on the web, most of our business comes from the online world.

5. Why should a trader pick XForex from all forex brokers?

Aside from all the benefits that XForex offer like commission-free trading, 24/7 online support, high leverage (200:1), XForex offers educational and learning trading experience that you won’t find anywhere else..

Our team of experts and financial trainers provide personal assistance and guide clients to financial success. We provide daily analysis and market reviews to our clients giving them a better understanding of the market and helping them trade profitably.

6. From your experience, what advice would you give a person who wants to enter the forex world?

My advice to the beginning trader entering the Forex world is as follows:
  • Learn the market and understand what you’re getting into.
  • Research and find the broker that suits your needs and wants. Look for a good offering but more importantly customer service, don’t go for the low rates offer without being certain they have a good customer service department. From my extensive experience in the Forex world your key to success will be your client-broker relationship. I can honestly say that at XForex they put an emphasis on servicing clients, which is so important.
  • Invest smartly and calculate your risks.
  • Always know when to get out of a trade.

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