SigmaForex Strategy

SigmaForex Introduces Forex as an Alternative Investment

The Forex market is a continuous 24-hour endeavor form its open at 2pm Sunday afternoon New York time with the Sydney-Auckland market until its close at 5pm Friday in New York. FX trading follows the day around the world: Tokyo's open at 9pm follows Sydney, London begins at 2am and finally New York takes over at 8am. The seamless 24 hour nature of the FX market gives the trader the unique experience of reacting to news and worldwide developments instantaneously, participating in real time in the largest trading market in the world.

Unlike the equity market, there is no restriction on short selling. Profit potential exists in the currency market regardless of whether a trader is long or short, or which way the market is moving. Since currency trading always involves buying one currency and selling another, there is no structural bias to the market. This means a trader has an equal potential to profit in a rising, or falling market.

The large Forex dealers usually do not charge commission or transaction fees to trade spot currencies exchange online or over the phone. In the equity market traders must pay a spread and a commission. The over-the counter structure of the Forex market eliminates exchange and clearing fees, which in turn lowers transaction costs. Costs are further reduced by the efficiencies created by a purely electronic market place that allows clients to deal directly with the market maker, eliminating both ticket costs and middlemen. Because the currency market offers round-the-clock liquidity, traders receive tight; competitive spreads both intra-day and night. Equity traders are more vulnerable to liquidity risk and typically receive wider dealing spreads, especially during after hours trading.

Forex allows greater leverage than the equities, futures or options market. Forex traders can choose up to 500:1 leverage according to the Sigma's margin regulation. Leverage is a double-edged sword. Without proper risk management this high degree of leverage can lead to large losses as well as gains.

The spot Forex market is a $1.3 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 without slippage.

Please note: Sigma Forex asks that you consider the risks associated with increasing your leverage. A relatively small market movement will have a proportionately larger impact on the funds you have deposited or will have to deposit. This may work against you as well as for you. You may sustain a total loss of initial margin and you may be required to deposit additional funds to cover a short margin position.