Forex vs Futures : The Differences

Since the rapid development of the world of information and internet technology, forex and futures business is gaining in popularity as more and more businesses are running internet based businesses. However, before you take the wrong steps because following the trend, you should first know the difference between the two start from the consumer, risk, different forex market with futures, and other differences so you can better know which business is suitable for you run.

Foreign Exchange or better known as Forex is a currency trading from different countries. Futures (futures trading) or better known as the Alternative Trading System is a trading system that deals with the sale and purchase of derivative contracts that occur between customers and SPA organizers. Brokers SPA participants (brokers or brokers) is the intermediary. Differences in forex market with futures seen from the perpetrators, risks, and customers

Differences The forex market with futures in terms of offenders

In forex trading, market participants are conducted by:

• Customers, such as multinational companies participating in the forex market due to trade transactions in other countries, they need foreign currency.
• Banks and financial institutions that are the most active participants in the forex market. Banks generally act as dealers. Banks earn money by selling currency at a price higher than the purchase price to customers.
• The broker is in charge of knowing which bank has the highest rate to buy the currency and also what bank has the lowest rate to sell, and then offer it to the trader
• The government is a very influential actor besides the central bank. In many countries the central bank runs its policy along with the government.
• Businesses are the biggest clients of these banks. They are also involved in international transactions. These businesses sell and buy goods to international clients and international suppliers.
• Speculators always monitor price fluctuations to benefit from any price gap

Market participants is what affects the different forex market with futures. Futures / SPA futures are facilitated by Indonesian Derivatives Clearing and Indonesia Futures Exchange, while their execution is supervised by the Commodity Futures Trading Supervisory Agency or BAPPEBTI. In Futures transactions all transactions are done by Broker because customers do not have access to transact directly. Therefore, you must appoint a trusted Broker to make a transaction after receiving a mandate from you. This mandate will then be forwarded to futures traders via Jakarta Futures Exchange (BBJ) and coordinated with Indonesian Derivatives Clearing House (KBI). During trading hours still open, futures traders are the ones who will offer the selling price and buy.

Although customers entrust every transaction to the broker, it does not mean the customer is off hand. It has the right to obtain official notice at the end of the transaction from the broker and if any discrepancies are found, the customer may complain to the broker. If the complaint is not addressed or there is a serious problem then, the customer may file a complaint to BAPPEBTI. BAPPEBTI is an institution that has the authority to revoke the license of a broker who is proven to be cheating because all brokers operating in Indonesia are required to hold permission from this institution.

Different Forex Market with Futures in terms of risk

Differences in the forex market with futures are also seen from risk factors, although every business that runs must contain risks. However, as an intelligent human beings we will certainly assess and choose investments or businesses that are less risk. Forex business is experiencing quite rapid growth in recent years. When compared to the number of brokers in 2003 with the year 2008 really experience extraordinary addition. Actually the cause of this business increase is caused by several factors, among them is the number of people who think that forex trading is a quick way to double the money plus the difficulty of finding a job.

The difficulty of finding a job triggers some people to slam stir and plunge into the forex world because the requirements to become a trader is not difficult. Someone can work unconditionally because trader can be accepted in almost all companies futures unconditionally when to run this business must be equipped with high-level science that certainly can not be learned instantly. You can imagine futures are very risky because the company alone can accept traders unconditionally.

Forex is equally risky. Certainly that every trader in the world must have experienced loss in trading, although the level of loss is different. Once the loss of trading then the customer will go bankrupt and the trader will be haunted by feelings of guilt. Therefore, to minimize this of course requires knowledge and enough flight hours. In addition, the challenge is the difficulty of getting customers, because this business is a trust business. Prospective customers will not want to risk their money on brokers whose reputation is tarnished. Because the profit opportunities of a forex trader is also highly determined by a trusted broker and trading platform that it provides.

Different from forex market with futures in terms of customers

Futures customers have different characters as well as different payment methods, so that futures customers can be divided into five groups:

• Sitting Duck, the consumer who only see the benefits side without seeing the risks, without seeing the difference of forex market with futures. Usually customers sitting duck is a newcomer or customer customers who plunge in the wind, so not yet know about futures. Customers in this group will usually experience frustration and leave the business but, if he is able to survive then he will go into the next group.
• Walking Lamb, is a customer who already know plus minus this business but they can not avoid the risk, because not yet have good risk management. Customers in this group think this business is very interesting and this business is really challenging.
• Running Pig. Customers of this type have been able to avoid the risk of this business but, still the profit they get is smaller than the loss. This type of customer is a customer who considers this business can really provide benefits.
• Hunting Fox. This type of customer has been able to feel the benefits he gets because he was able to benefit consistently.

Meanwhile, forex customers are required to be more thorough and careful because at this time many brokers who want to hook customers in various ways. They provide many promos and facilities for customers, or provide an affiliate facility that is if there are people who want to register through our affiliate link it will get [ersenan from the deposit they do. Therefore, the customer must be extra careful and should not be tempted by the abundant benefits. We must really choose a reliable broker, do not be lulled by the bonus given to secure our deposits are guaranteed. Do not be shy to ask questions and ask for information about them before joining. Read the article first.

In conclusion, forex and futures both have potential market opportunities. Your choice is of course influenced by the kind of profit you want to get, as well as your readiness to deal with any risks that may occur. By knowing, different forex market with futures, you can choose wisely, whether to be active as a forex trader, or become a passive agent as a futures investor.

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