FX Market Advantages
Over the last three decades the foreign exchange market has become the world's largest financial market, with approx. $2 trillion USD traded daily. The primary market for currencies is the 24-hour Interbank market. Each day the FX market literally follows the sun around the world moving from the major banking centers of the Asia Pacific Region in Australia and New Zealand, to Hong Kong and Tokyo in the Far East, to Europe, then to North America and finally back to the Far East.
Until recently the FX market has been inappropriate for non-institutional investors. With large minimum transaction sizes and often-stringent financial requirements only banks, hedge funds and major currency dealers were able to participate. These large traders were able to take advantage of the many benefits offered by the FX market vs. other markets, including high liquidity and the strong trending nature of the world's major exchange rates. Today, via Tactical Asset Management, you can now benefit too.
Some of the advantages of participating in FX investments include:
- Contiguous 24-hour trading From Sunday to Friday each week
- Highly liquid
- Attractive Leverage possible, which allows more efficient use of capital (See: Risks of Leverage)
- Significantly lower or no transaction costs, commissions and exchange fees (bid/ask spreads apply)
- No restrictions on shorting which allows optimal trading opportunity in all market conditions
- No undue market restrictions such as Price-Limits or Trading Halts
- No structural-bias in market direction, allowing for maximal trading opportunity in both Up and Down Trending Markets
- Far lower incidence of market-manipulation, insider-trading or other undue infractions, disadvantages that cost the end-investor/trader
- Positive (and negative) carry-potential via International Interest-Rate differentials
For answers to your questions regarding the FX market, our FX Managed Account programs or any of the above information, please Contact your Tactical Asset Management representative.
PLEASE BE AWARE THAT DESPITE THE POTENTIAL FOR PROFIT, THERE ARE ALSO SIGNIFICANT RISKS INVOLVED WITH INVESTING IN THE FX MARKET. PLEASE CLICK HERE FOR A BRIEF OVERVIEW OF THESE FX RISKS.