Forex Vs. Futures | SigmaForex

Forex Vs. Futures:

Futures is Exchange traded contracts are not issued like securities, but they are "created" when one party buys (goes long) a contract from another party (who goes short). In the beginning there are no contracts, so the number of long contracts must equal the number of short contracts. This always goes through the exchange, which means that the exchange is the counter party for all trades. However, the exchange does not take any net positions. In this way clients do not know with whom they have ultimately traded. Compare this with securities, in which an issuer issues the security. After that, it is a legal entity that is traded independently of the issuer. Even if the issuer buys back some securities, they still exist. Only if they are legally canceled can they disappear.

Forex	Futures
Largest and most liquid market in the world	Liquidity dependent on month of traded contract
24-hour trading action for 5.5 days a week	Varying trading hours based on the markets
Can profit in both bull and bear markets	Tend to have extended bearish periods
Can short-sell anytime	Trading restricted by limit up/down rule
Minimum slippage and order errors	More room for slippage and error
100:1 leverage on standard-sized accounts	Smaller leverage
Extremely low margins 1% or better	Higher margins usually 5-8%
No commissions	Commissions on every trade
Most liquid market in the world	Limited liquidy
Instant executions, all-electronic market	Delayed fills possible in open markets
No limits on market moves	Some markets have maximum daily movement limits that can trap you in losing position
Usually free streaming quotes	Expensive fees for streaming quotes

Relative Vigor Index

It was generated by John F. Ehlers. Relative Vigor Index (RVI) calculation is based on the idea that in a rising market the closing price is usually higher than the opening price, and on the bearish market the closing is usually below the opening price.
The basic signals of Relative Vigor Index (RVI) are:
1- Bullish divergence / bearish convergence - the main signal pointing to the weakness of the current trend.
2- A good moment to open a sell / buy position is the crossing of the RVI line by the signal line from above/below once the bullish divergence / bearish convergence has appeared on the chart.
3- In a flat market an exit from the overbought / oversold area is a signal to sell / buy.