Genuine Trading Solutions provides Foreign Exchange ("Fx")
services and trading for two distinct types of clientele. As the term Foreign
Exchange implies, our institutional abilities have allowed us
to provided our clients direct floor access to the worlds largest
currency and Fx market. The professionals at Genuine Trading
Solutions are able to provide physical conversion and trade execution to more
than 40 different currencies worldwide.
CASH FOREX VERSUS CURRENCY FUTURES
As a potential investor it is important for you to understand
the differences between cash Fx and currency futures. In currency
futures, the contract size is predetermined.
Futures traders exercise leverage by
utilizing Margin to control a futures contract.
(Margin is money deposited by both the buyer
and the seller to assure the integrity of the contract.)
But with liquidity in mind, the futures market may seem limiting because the data flow comes to a stop at the end of the business day (just as it does with the stock market) thus disrupting your perception of the market. For some traders, this could lead to a certain level of anxiety. If important data comes in from England or Japan while the U.S. futures markets is closed, the next day's opening could be a wild ride.
In contrast to the futures market, the spot Fx market is a
24-hour, continuous currency exchange that never closes. There
are dealers in every major time zone, in every major dealing
center (i.e., London, New York, Tokyo, Hong Kong, Sydney, etc.)
willing to quote two-way markets. The size of this market, over
one trillion dollars per day gives you near perfect liquidity.
Because of the advantages of sheer volume and daily volatility,
the excitement of this market is unparalleled.
From 1971 until recent years the virtual owners of this market were the banks, multinational corporations and large brokerage firms. If an individual wanted to invest in this market, he could invest with a bank with a one million dollar cash deposit backed by the requirement of a 5-10 million dollar net worth. A slightly better option was provided by the brokerage firms, which asked a lower minimum deposit on average of a quarter million dollars.
But now the Fx market has been opened
up to Individual investors. Unlike the huge
sums of money previously required by
the
banks and brokerage firms, com-
paratively
far lower margin require-
ments are finally
available that now
allows virtually any
individual to
trade along with the
professionals
and institutions.
In addition,
individual investors
have the
opportunity to take
advantage
of
the growing boom in
computer and
communication technologies that has made
this market accessible in ways previously exclusive only to large players.
WHY IS THE SPOT CURRENCY MARKET ATTRACTIVE TO INVESTORS?
Professional investors for individual accounts have dramatically
increased their level of participation in the cash Fx market
in recent years. Add to this the growing use of cash Fx by individual
investors and you have a rapidly growing investment arena. The
following summarizes the many reasons professional investors
have flocked to this market.
Liquidity This market can absorb trading volumes and per trade sizes that dwarf the capacity of any other market. On the simplest level, liquidity is a powerful attraction to any investor as it suggests the freedom to open or close a position at will.
HOW CAN I PARTICIPATE IN THE SPOT CURRENCY MARKET AS A TRADER?
Now the Fx market has been opened up to Individual investors.
Unlike the huge sums of money previously required by the banks
and brokerage firms, account sizes of US$10,000 are finally
available that now allow virtually any individual to trade along
with professionals and institutions.
