oussama94
05-28-2017, 18:49
The existence of much lower transaction
costs also makes the ** market particularly attractive. In the equities market,
traders must pay a spread (i.e., the difference between the buy and sell
price) and/or a commission. With online equity brokers, commissions can
run upwards of $20 per trade. With positions of $100,000, average roundtrip
commissions could be as high as $120. The over-the-counter structure
of the ** market eliminates exchange and clearing fees, which in turn lowers
transaction costs. Costs are further reduced by the efficiencies created
by a purely electronic marketplace that allows clients to deal directly with
the market maker, eliminating both ticket costs and middlemen. Because
the currency market offers around-the-clock liquidity, traders receive tight
competitive spreads both intraday and at night. Equities traders are more
vulnerable to liquidity risk and typically receive wider dealing spreads, especially
during after-hours trading
costs also makes the ** market particularly attractive. In the equities market,
traders must pay a spread (i.e., the difference between the buy and sell
price) and/or a commission. With online equity brokers, commissions can
run upwards of $20 per trade. With positions of $100,000, average roundtrip
commissions could be as high as $120. The over-the-counter structure
of the ** market eliminates exchange and clearing fees, which in turn lowers
transaction costs. Costs are further reduced by the efficiencies created
by a purely electronic marketplace that allows clients to deal directly with
the market maker, eliminating both ticket costs and middlemen. Because
the currency market offers around-the-clock liquidity, traders receive tight
competitive spreads both intraday and at night. Equities traders are more
vulnerable to liquidity risk and typically receive wider dealing spreads, especially
during after-hours trading