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Suggest You - Market Liquidity - Foreign Exchange vs The Stock Market
Almost everyone who has had the task of motivating and training organizations in the lean principles has experienced a set of barriers, especially when dealing with people who are reluctant to buy into the Lean principles and Lean thinking.How often have we not heard; "Well it sounds all right in theory but it will never work in real life!"To a certain degree these people have a point. I have had to listen to numerous consultants and teachers who are preaching Lean principles, but without the ability to link the great theories to the real world.And when they are challenged, the response often is: "Well it does work, just look at Toyota!" Guess what? That is not going to convince a sceptical production manager with many years of experience in a traditional batch production.In my experience it is extremely important to be able t
It is a trader’s responsibility to make the most of the resources on offer to them. So much depends on finding a good broker. Due diligence is vital when making this decision. Two traders executing the same sized order, at the same time, in the same market can experience very different results depending on their brokers. Despite the promise of guaranteed fills it is amazing how many retail forex customers feel aggrieved by the level of service provided them. You need only open your web browser and search for ‘forex broker reviews’ or ‘broker reviews foreign exchange’ to read stories about poor service and order management.
Trading profitably is about finding and trading an edge. This edge should make the most of the resources available to you and your characteristics as a trader. It is your goal to work with the market and never against it. The issue of liquidity, or lack of it, is manageable,
Franchise company relations are critical to meet market demands and changes in customer or consumer buying behavior. Franchise relations between the franchisor and the franchised outlets or franchisees paramount to the success of the brand name. When franchise company relation strategies are working smoothly this provides additional efficiencies and therefore a greater chance for increased profits for both the franchisor and the franchisee.To maintain a strong franchise company relations strategy there must be constant communication between both parties. There needs to be feedback from the franchised outlets who are dealing with the customer on a constant and real-time basis. Any changes that the franchisor is considering must be communicated to the franchisees in advance of any large change. Regional adaptation must also be considered in some markets
Let’s face it, every trader on the Planet has wished at some point during their career that slippage did not exist. I for one have cursed at the top of my voice, let alone under my breath, at slippage on an entry or exit. However, every successful trader on the Planet has found a way to deal with it either mentally, technically or most likely with a bit of both.
The type of trader you are has a massive bearing on the extent to which slippage can affect you. Investors, long and medium term traders will worry less about slippage because the profit targets involved in this type of trading are generally very large. It is also the case that medium to long term trading often involves entry zones rather than specific entry prices. However, day trading methods, specifically scalping, can be hit hard by slippage, especially if it is excessive.
Bearing this in mind it would seem that the logical choice for most day traders would be to choose the more liquid FX market, leaving stocks out in the cold. However, this is not the case. It is possible for stock traders to set a ‘chase factor’ on their entry limit orders. This has the advantage of being able to control slippage. In fact momentum day traders thrive on this order entry system. Coupled with an account with a highly regarded direct access broker and you have the means to be able to enter orders of several thousand shares and control the risk of slippage.
Knowing When Not to Trade
Momentum traders are also very adept at picking the times they trade. It is said that knowing when not to trade is just as important, if not more so, than knowing when to trade. Times of poor liquidity, such as lunch times, slow moving markets and pre and post hours trading are often avoided. The concept of picking when you trade is just as important if you trade foreign exchange but not necessarily for the purpose of avoiding slippage. There is no real pre and post hours trading because of the available trading hours with market depth remaining good throughout.
It would be na?ve to think that slippage plays no part in foreign exchange trading at all. During periods of rapid market movement slippage on market entries and hard stops is commonplace. This activity usually takes place at extremely important data releases such as Nonfarm Payrolls and interest rate announcements. Indeed retail brokers guarantee ‘the price you see is the price you get’ during ‘normal’ market hours but not at times of excessive volatility.
Out of Hours Trading
The concept of out of hours trading does not really exist in foreign exchange as it does on say NASDAQ listed shares. During the working week there is always at least one major financial centre open to facilitate trades.
Let us compare this with the NASDAQ. The NASDAQ is restricted to the hours of 09:30-16:30 eastern. Trading outside of these hours is possible but the reduction in liquidity is massive. Price gaps between one day’s close and the next day’s open are commonplace due to this lack of liquidity. If you were to add this to the possibility of company specific and geopolitical news events then huge gaps are possible. At times like this slippage on stop orders can be enormous and gaps can take you past your risk threshold. This is clearly one instant where superior liquidity in the FX market is a massive advantage.
Once again it is possible to lessen the effects of these gaps. By using a broker who gives you access to the market out of hours or limiting your exposure to market open hours only you have avoided the problem. It is the case that many forex traders close their positions over the weekend when gaps are possible. This comes down to your trading style as much as anything. If you are a long/ medium term trader then you will have to factor in the risk of gaps.
Market-wide Liquidity
Not only is the average daily stock trading volume much lower than in FX but it is also much more diluted. Of the $50 billion changing hands on a daily basis, think how many countries, exchanges and shares this is spread over. Conversely, in the foreign exchange market it is estimated that 85% of the massive $1.8-2 Trillion changing hands everyday is concentrated in only eight major currencies. These currencies can be seen in the table below:
USD: U.S. Dollar
EUR: Euro
JPY: Japanese Yen
GBP: Great Britain Pound Sterling
CHF: Swiss Franc
CAD: Canadian Dollar
AUD: Australian Dollar
NZD: New Zealand Dollar
It would be wrong to assume that all stocks have the same levels of liquidity. The fact is that average daily volume and the number of shares outstanding or ‘float’ is the determining factor. If volume is high and there is a large float then executing orders without slippage is more likely. For example, Microsoft (MSFT) currently has an average daily volume of close to 58 000 000 million shares. With this kind of market depth you are far more likely to have an order of 10 000 shares executed without slippage than you are in Sears Holding Corp (SHLD) which has an average daily volume of nearer 2 000 000 shares.
Conclusion
So then, if you trade foreign exchange you have the benefits of 24-hour liquidity and market depth. This results in less slippage and potentially more money in your pocket. Case closed then. Or maybe not. The ability to succeed as a trader relies on your ability to adapt and work with the market. Those who choose stocks over forex (and there are a fair few; retail forex has only really been around since the dawn of the internet) are able to deal with liquidity issues and make money regardless. In fact it will seem to these people that liquidity is not even an issue. It is an unavoidable market characteristic that was there before them and will still be there long after they have retired.
It is a trader’s responsibility to make the most of the resources on offer to them. So much depends on finding a good broker. Due diligence is vital when making this decision. Two traders executing the same sized order, at the same time, in the same market can experience very different results depending on their brokers. Despite the promise of guaranteed fills it is amazing how many retail forex customers feel aggrieved by the level of service provided them. You need only open your web browser and search for ‘forex broker reviews’ or ‘broker reviews foreign exchange’ to read stories about poor service and order management.
Trading profitably is about finding and trading an edge. This edge should make the most of the resources available to you and your characteristics as a trader. It is your goal to work with the market and never against it. The issue of liquidity, or lack of it, is manageable, a
Many industries in the United States of America face severe crisis due to not enough skilled labor to run the infrastructure or man all the jobs. One of the most serious looming crisis is in employment is coming in the Federal Aviation Administration's air traffic controller job sector.Due to the number of people retiring or air traffic controllers and the increasing air traffic in the United States due to impart globalization we simply will not have enough air traffic controllers by the year 2012. In fact we will be over 20,000 people short at that time and it will only get worse.What is the Federal Aviation Administration doing to curb this looming crisis? Well a couple of things; one, they are working with NASA to build artificially intelligent supercomputers to control the air traffic and alleviate some of the human responsibility, which so o
Knowing When Not to Trade
Momentum traders are also very adept at picking the times they trade. It is said that knowing when not to trade is just as important, if not more so, than knowing when to trade. Times of poor liquidity, such as lunch times, slow moving markets and pre and post hours trading are often avoided. The concept of picking when you trade is just as important if you trade foreign exchange but not necessarily for the purpose of avoiding slippage. There is no real pre and post hours trading because of the available trading hours with market depth remaining good throughout.
It would be na?ve to think that slippage plays no part in foreign exchange trading at all. During periods of rapid market movement slippage on market entries and hard stops is commonplace. This activity usually takes place at extremely important data releases such as Nonfarm Payrolls and interest rate announcements. Indeed retail brokers guarantee ‘the price you see is the price you get’ during ‘normal’ market hours but not at times of excessive volatility.
Out of Hours Trading
The concept of out of hours trading does not really exist in foreign exchange as it does on say NASDAQ listed shares. During the working week there is always at least one major financial centre open to facilitate trades.
Let us compare this with the NASDAQ. The NASDAQ is restricted to the hours of 09:30-16:30 eastern. Trading outside of these hours is possible but the reduction in liquidity is massive. Price gaps between one day’s close and the next day’s open are commonplace due to this lack of liquidity. If you were to add this to the possibility of company specific and geopolitical news events then huge gaps are possible. At times like this slippage on stop orders can be enormous and gaps can take you past your risk threshold. This is clearly one instant where superior liquidity in the FX market is a massive advantage.
Once again it is possible to lessen the effects of these gaps. By using a broker who gives you access to the market out of hours or limiting your exposure to market open hours only you have avoided the problem. It is the case that many forex traders close their positions over the weekend when gaps are possible. This comes down to your trading style as much as anything. If you are a long/ medium term trader then you will have to factor in the risk of gaps.
Market-wide Liquidity
Not only is the average daily stock trading volume much lower than in FX but it is also much more diluted. Of the $50 billion changing hands on a daily basis, think how many countries, exchanges and shares this is spread over. Conversely, in the foreign exchange market it is estimated that 85% of the massive $1.8-2 Trillion changing hands everyday is concentrated in only eight major currencies. These currencies can be seen in the table below:
USD: U.S. Dollar
EUR: Euro
JPY: Japanese Yen
GBP: Great Britain Pound Sterling
CHF: Swiss Franc
CAD: Canadian Dollar
AUD: Australian Dollar
NZD: New Zealand Dollar
It would be wrong to assume that all stocks have the same levels of liquidity. The fact is that average daily volume and the number of shares outstanding or ‘float’ is the determining factor. If volume is high and there is a large float then executing orders without slippage is more likely. For example, Microsoft (MSFT) currently has an average daily volume of close to 58 000 000 million shares. With this kind of market depth you are far more likely to have an order of 10 000 shares executed without slippage than you are in Sears Holding Corp (SHLD) which has an average daily volume of nearer 2 000 000 shares.
Conclusion
So then, if you trade foreign exchange you have the benefits of 24-hour liquidity and market depth. This results in less slippage and potentially more money in your pocket. Case closed then. Or maybe not. The ability to succeed as a trader relies on your ability to adapt and work with the market. Those who choose stocks over forex (and there are a fair few; retail forex has only really been around since the dawn of the internet) are able to deal with liquidity issues and make money regardless. In fact it will seem to these people that liquidity is not even an issue. It is an unavoidable market characteristic that was there before them and will still be there long after they have retired.
It is a trader’s responsibility to make the most of the resources on offer to them. So much depends on finding a good broker. Due diligence is vital when making this decision. Two traders executing the same sized order, at the same time, in the same market can experience very different results depending on their brokers. Despite the promise of guaranteed fills it is amazing how many retail forex customers feel aggrieved by the level of service provided them. You need only open your web browser and search for ‘forex broker reviews’ or ‘broker reviews foreign exchange’ to read stories about poor service and order management.
Trading profitably is about finding and trading an edge. This edge should make the most of the resources available to you and your characteristics as a trader. It is your goal to work with the market and never against it. The issue of liquidity, or lack of it, is manageable,
Strange thing management isn’t it; it’s not a career path we choose as a child, alongside the fireman, policeman, brain surgeon & astronaut. But one that a great deal more of us find ourselves slipping into, and yes I mean slip into, we never choose it, it kind of snuck up on us. At school your career guidance teacher takes you hand and sings the praises of a good university education, forgetting to mention that most arts degrees serve little purpose and hold no stock with most employers, i.e. psychology, philosophy, history and the list goes on, what job has this prepared you for, none, you find yourself with 4 years less experience in the workplace, ?15,000 in debt and any grandiose ideas of your career are quickly replaced with a desperation for a job, any job, as long as it pays the bills and allows you to start to enjoy life. Then 3 years later you are st
Let us compare this with the NASDAQ. The NASDAQ is restricted to the hours of 09:30-16:30 eastern. Trading outside of these hours is possible but the reduction in liquidity is massive. Price gaps between one day’s close and the next day’s open are commonplace due to this lack of liquidity. If you were to add this to the possibility of company specific and geopolitical news events then huge gaps are possible. At times like this slippage on stop orders can be enormous and gaps can take you past your risk threshold. This is clearly one instant where superior liquidity in the FX market is a massive advantage.
Once again it is possible to lessen the effects of these gaps. By using a broker who gives you access to the market out of hours or limiting your exposure to market open hours only you have avoided the problem. It is the case that many forex traders close their positions over the weekend when gaps are possible. This comes down to your trading style as much as anything. If you are a long/ medium term trader then you will have to factor in the risk of gaps.
Market-wide Liquidity
Not only is the average daily stock trading volume much lower than in FX but it is also much more diluted. Of the $50 billion changing hands on a daily basis, think how many countries, exchanges and shares this is spread over. Conversely, in the foreign exchange market it is estimated that 85% of the massive $1.8-2 Trillion changing hands everyday is concentrated in only eight major currencies. These currencies can be seen in the table below:
USD: U.S. Dollar
EUR: Euro
JPY: Japanese Yen
GBP: Great Britain Pound Sterling
CHF: Swiss Franc
CAD: Canadian Dollar
AUD: Australian Dollar
NZD: New Zealand Dollar
It would be wrong to assume that all stocks have the same levels of liquidity. The fact is that average daily volume and the number of shares outstanding or ‘float’ is the determining factor. If volume is high and there is a large float then executing orders without slippage is more likely. For example, Microsoft (MSFT) currently has an average daily volume of close to 58 000 000 million shares. With this kind of market depth you are far more likely to have an order of 10 000 shares executed without slippage than you are in Sears Holding Corp (SHLD) which has an average daily volume of nearer 2 000 000 shares.
Conclusion
So then, if you trade foreign exchange you have the benefits of 24-hour liquidity and market depth. This results in less slippage and potentially more money in your pocket. Case closed then. Or maybe not. The ability to succeed as a trader relies on your ability to adapt and work with the market. Those who choose stocks over forex (and there are a fair few; retail forex has only really been around since the dawn of the internet) are able to deal with liquidity issues and make money regardless. In fact it will seem to these people that liquidity is not even an issue. It is an unavoidable market characteristic that was there before them and will still be there long after they have retired.
It is a trader’s responsibility to make the most of the resources on offer to them. So much depends on finding a good broker. Due diligence is vital when making this decision. Two traders executing the same sized order, at the same time, in the same market can experience very different results depending on their brokers. Despite the promise of guaranteed fills it is amazing how many retail forex customers feel aggrieved by the level of service provided them. You need only open your web browser and search for ‘forex broker reviews’ or ‘broker reviews foreign exchange’ to read stories about poor service and order management.
Trading profitably is about finding and trading an edge. This edge should make the most of the resources available to you and your characteristics as a trader. It is your goal to work with the market and never against it. The issue of liquidity, or lack of it, is manageable,
Part I of this article explored how Neuro-linguistic Programming (NLP) pinpoints ways to gain instant rapport with clients, leads, and business associates, and more specifically, how we can use physiology, matching and mirroring to create instant magic communication.Part II examines how NLP uses tonality and words to establish rapport.TONALITYWhile physiology accounts for 55% of communication among humans, tonality accounts for 38%. Most people have had the experience of someone saying, “I’m fine. Nothing’s wrong.” While the words on the page seem to indicate that this person doesn’t have a problem, the tone used speaks louder than the words. Without tone the words suggest that the speaker doesn’t have a problem. Consider irony and sarcasm; both are communicated through tonality. If a person says, “I’m fine. Nothings wrong,” in a pleasant voi
USD: U.S. Dollar
EUR: Euro
JPY: Japanese Yen
GBP: Great Britain Pound Sterling
CHF: Swiss Franc
CAD: Canadian Dollar
AUD: Australian Dollar
NZD: New Zealand Dollar
It would be wrong to assume that all stocks have the same levels of liquidity. The fact is that average daily volume and the number of shares outstanding or ‘float’ is the determining factor. If volume is high and there is a large float then executing orders without slippage is more likely. For example, Microsoft (MSFT) currently has an average daily volume of close to 58 000 000 million shares. With this kind of market depth you are far more likely to have an order of 10 000 shares executed without slippage than you are in Sears Holding Corp (SHLD) which has an average daily volume of nearer 2 000 000 shares.
Conclusion
So then, if you trade foreign exchange you have the benefits of 24-hour liquidity and market depth. This results in less slippage and potentially more money in your pocket. Case closed then. Or maybe not. The ability to succeed as a trader relies on your ability to adapt and work with the market. Those who choose stocks over forex (and there are a fair few; retail forex has only really been around since the dawn of the internet) are able to deal with liquidity issues and make money regardless. In fact it will seem to these people that liquidity is not even an issue. It is an unavoidable market characteristic that was there before them and will still be there long after they have retired.
It is a trader’s responsibility to make the most of the resources on offer to them. So much depends on finding a good broker. Due diligence is vital when making this decision. Two traders executing the same sized order, at the same time, in the same market can experience very different results depending on their brokers. Despite the promise of guaranteed fills it is amazing how many retail forex customers feel aggrieved by the level of service provided them. You need only open your web browser and search for ‘forex broker reviews’ or ‘broker reviews foreign exchange’ to read stories about poor service and order management.
Trading profitably is about finding and trading an edge. This edge should make the most of the resources available to you and your characteristics as a trader. It is your goal to work with the market and never against it. The issue of liquidity, or lack of it, is manageable,
When working properly, computers enable small businesses to make big business profits; however, get booted off your computer and you’re suddenly starving. In most instances, computers usually act up due to lack of care by its owners. Here are four computer tips that’ll keep you up and running smoothly.Tip #1 -- Back up your computer’s data no less than once a month.Too often a small business is thrust back to infancy because it didn’t take time to back up precious data; information that took hours upon hours to create. Information that’s irreplaceable, such as customer databases or employment contracts. Keep in mind you’ll want to back up your written data as well as check books such as Quicken and email address books. If your computer has a CD writer, it’s simple and quick to back up your data. Simply select the files and folders you want to back u
It is a trader’s responsibility to make the most of the resources on offer to them. So much depends on finding a good broker. Due diligence is vital when making this decision. Two traders executing the same sized order, at the same time, in the same market can experience very different results depending on their brokers. Despite the promise of guaranteed fills it is amazing how many retail forex customers feel aggrieved by the level of service provided them. You need only open your web browser and search for ‘forex broker reviews’ or ‘broker reviews foreign exchange’ to read stories about poor service and order management.
Trading profitably is about finding and trading an edge. This edge should make the most of the resources available to you and your characteristics as a trader. It is your goal to work with the market and never against it. The issue of liquidity, or lack of it, is manageable, and manage it you must (there are several pointers at how to do so in this article). Don’t let it be the determining factor in your trading.
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