Explore FXTM Invest and Discover How to Tap from $4 TRILLION Daily Tradingby Olayinka Oyelami About Me
The foreign exchange market, which is usually known as "forex" or "FX," is the largest financial market in the world with its $4 TRILLION a day trade volume. In the forex market, $4 trillion is traded daily, making it the largest and most liquid market in the world. This market can absorb trading volume and transaction sizes that dwarf the capacity of any other market.Forex trading is the simultaneous buying of one currency and selling another based on the exchange rate of a currency versus other currencies which is a reflection of the condition of that country's economy, compared to other countries' economies. Currencies are traded through a broker or dealer, and are traded in pairs; for example the euro and the U.S. dollar (EUR/USD) or the British pound and the Japanese yen (GBP/JPY). When you trade in the forex market, you buy or sell in currency pairs. One important thing to note about the forex market is that while commercial and financial transactions are part of trading volume, most currency trading is based on speculation.
Unlike other financial markets like the New York Stock Exchange, the forex spot market has neither a physical location nor a central exchange. The forex market is considered an Over-the-Counter (OTC), or "Interbank", market due to the
fact that the entire market is run electronically, within a network of banks, continuously over a 24-hour period. This means that the spot forex market is spread all over the globe with no central location.
The foreign exchange market, which is usually known as "forex" or "FX," is the largest financial market in the world with its $4 TRILLION a day trade volume. In the forex market, $4 trillion is traded daily, making it the largest and most liquid market in the world. This market can absorb trading volume and transaction sizes that dwarf the capacity of any other market.
The futures market trades a puny $30 billion per day. Thirty billion? Peanuts! The forex OTC market is by far the biggest and most popular financial market in the world, traded globally by a large number of individuals and organizations. In the OTC market, participants determine who they want to trade with depending on trading conditions, attractiveness of prices, and reputation of the trading counterpart.
There are many benefits and advantages of trading forex. Here are just a few reasons why so many people are choosing this market:
No clearing fees, no exchange fees, no government fees, no brokerage fees. Most retail brokers are compensated for their services through something called the "bid-ask spread".
Spot currency trading eliminates the middlemen and allows you to trade directly with the market responsible for the pricing on a particular currency pair.
No fixed lot size
In the futures markets, lot or contract sizes are determined by the exchanges. A standard-size contract for silver futures is 5,000 ounces. In spot forex, you determine your own lot, or
position size. This allows traders to participate with accounts as small as $25
Low transaction costs
The retail transaction cost (the bid/ask spread) is typically less than 0.1% under normal market conditions. At larger dealers, the spread could be as low as 0.07%.
A 24-hour market
There is no waiting for the opening bell. From the Monday morning opening in Australia to the afternoon close in New York, the forex market never sleeps. This is awesome for those
who want to trade on a part-time basis, because you can choose when you want to trade: morning, noon, night, during breakfast, or in your sleep.
No one can corner the market
The foreign exchange market is so huge and has so many participants that no single entity (not even a central bank or the mighty Chuck Norris himself) can control the market price for
an extended period of time...It's FREE to Register...Click here Register today to book your place!
Created on Jul 22nd 2019 03:44. Viewed 248 times.
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