With the wide use and application of different types of technologies, the forex spot market has become even more beneficial to investors. It provides more transparent and accessible information than before. As a result the FX spot market has become a preferred destination to active traders.
Forex market provides higher price transparency, which was greatly facilitated by the wide use of online foreign exchange trading. This price transparency in combination with the provided online capabilities further works for the benefit of traders.
Added to the possibility of directly trading with the market maker, the online foreign exchange increases further its advantageousness.
Indicative vs. Executable Prices
Forex market includes the possibility of using the services of a forex broker. The latter provides information on executable prices or in other words, the prices at which the market maker is willing and able to buy or sell.
On the other hand, indicative prices represent quotes based on indications of the prices and the pace at which they are changing.
Prices that are quoted in online trading represent the last prices at which buying or selling has been executed. As a result these prices can be qualified rather as indicative than as executable.
Another advantage of trading online represents the possibility of trading directly with the market maker, which leads to getting fair prices on the different transactions that are made.
On the other hand, if an investor trades through the services of a broker, traders have to address the latter in order to get a price. This may result in the broker shading the price in accordance with the position at which the trader is.
Further advantage of online forex trading represents enhanced efficiency and transparency. This is thanks to the provision of a portfolio with real time characteristics. Additionally, tracking capabilities can be offered. Reports can be issued if the traders want, which include information on:
- Open position
- Open order
- Margin position
- Profits/losses that has been made/incurred through every trade
So, the next time you consider your means of investing don’t forget to include online forex market trading as part of your alternatives.