Why use Margin FX? - MF Global Futures broker, Futures trading, CFD trading, online Futures trading

Why use Margin FX?

Liquidity

The spot Forex market is a $1.4 trillion daily market, making it the largest and most liquid market in the world. This market can absorb trading volume and transaction sizes that dwarf the capacity of any other market. If you compare this to the $30 billion per day futures market it becomes clear that the futures markets provide only limited liquidity. The market is always liquid, meaning positions can be liquidated and stop orders executed with minimal or no slippage.

24-Hour Market

The Forex market is a seamless 24-hour market. At 7.00 AM Monday, Sydney, trading begins as markets open in Sydney and New Zealand. At 9.00 AM, the Tokyo and Singapore market opens, followed by London, and finally New York. As a trader, this allows you to react to favourable / unfavourable news by trading immediately. It also gives traders the added flexibility of determining their trading day.

Execution Quality and Speed

As the foreign exchange dealer is on the phone with the specialist dealer, the price and amount dealt can be immediately confirmed back to you.

Margin/Risk Management

The exiting positions are revalued by MF Global on a daily basis and, any unrealised profit or losses are taken out or put into the account. This is call ”Variation margin”. Due to the nature of the product, in times of volatile market movements the initial margin could change according to the volatility calculation. At this time, more funds would be requiring to be deposited into the clients’ account.

Disclaimer: This website contains general information only and does not constitute financial product advice. Derivative products can be risky and are not suitable for all investors. MF Global Australia recommends customers seek independent advice. A MF Global Australia Product Disclosure Statement (PDS) is available through the website www.mfglobal.com.au and should be considered prior to trading MF Global's derivative products. Investing in derivatives carries a high level of risk to capital, and due to the potential volatility and fluctuations in value, investors may not get back the amount of their original investment. In certain circumstances an investor may be liable to pay a far greater sum, with losses being higher than an initial deposit.