Forex is the largest and most liquid market in the world today. the velocity of money is almost equivalent to the value of $ 4.0 trillion, three times higher than the average combined stock and bond markets. The forex market operates 24 hours and transactions take place through the global banking network, ranging from Asia, Europe and America. Not through exchange forex transactions or transactions are outside the market (Over The Counter). Market participants can buy and sell currencies to take advantage of fluctuations in the price movement.
The velocity of money in commodity markets is quite high due to commodity transactions is one of the most popular instruments in the eyes of most of the global investment managers.
Commodities can be interpreted as something of a physical substance. Commodities divided in two, the first is a general commodity which is the result of mining such as gold, silver, oil and other commodities. This commodity is a limited natural resource and a high cost to obtain it. Second, is a commodity that is produced from agricultural production such as sugar, rice, cocoa, coffee and others.
Commodities easier to understand because a lot depends on the conditions of supply and demand fundamentals. Volatility of commodity prices is smaller than stocks and bonds, thus providing an efficient portfolio diversification option for market participants. What makes commodities more attractive and more risky than stocks in the transaction is the amount of leverage or leverage. In fact, the risk of trading in commodity markets will not be more than the risk that you set yourself.