Sunday, November 9, 2008

Forex - Price stability

The trading volume of the Forex market being 100 times more than the New York Stock Exchange, there are always dealers willing to buy or sell currencies here. This cannot be the case with the Equity trading which has a lower trade volume. This can therefore put the investors of the stock market to liquidity risk, resulting in larger price movements. The superior liquidity of the major currencies also helps ensure price stability in the Forex market.

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