When trading ETF’s there is a commission that needs to be paid, which is the case with most OTC trading. There is no minimum buy requirements within ETF Trading and neither does it require a minimum holding period, which is common to most mutual funds. In fact investors can buy as low as just one share of an ETF. This makes for ETF’s to be an excellent investment vehicle when compared to mutual funds.
The CFTC recently issued regulations concerning off-exchange retail foreign currency transactions and the entities that offer, solicit, provide advice regarding, or operate pools involving such transactions. This act/regulation will significantly change the structure of US based over-the-counter derivaties markets. The regulation aims to promote a higher level of transparency and to monitor and moderate systematic risks.
In forex margin trading, traders often utilize a short-term credit offered by the forex broker who provides the margin. This credit allowance can be used to buy any quantity of currency that exceeds the original account value of the trader that could be otherwise impossible to achieve with a low initial deposit. In other words Forex margin trading gives traders more purchasing power and the potential for more profits (and losses). How does forex margin trading work? Read more.
A publicly listed company’s stocks are one of the most popularly traded assets. But do you really know what impacts or influences a company’s share price? In “What influences a company’s share price” we explain the factors that impact a company’s share price and how investors and traders can make use of this information to trade the financial markets better.
If you hold a forex position “overnight” you may pay a Rollover charge or be paid a rollover benefit by your forex broker. The rollover fee charged by your forex broker depends on the currency pair, the interbank market rate (interest rate differential between the currencies), duration of the rollover period, size of the position and the spread of the currency pair.