Is Forex Currency Trading Different to Currency Market Trading?
Currency Market Trading and Forex Currency Trading for all intents and purposes are the same thing. People don't trade US dollars for US dollars, except to make change at a bank for a retail shop. So the terms are referring to international currency being exchanged for a different country's money. Fact is, you can also call it 4x trading, 4x currency trading, fx currency trading, fx exchange - they all are referring to the same thing.
Many people do get confused about the names. This comes from the fact that many people know so little about forex currency trading, and so the general confusions they have about currency market trading extends to all the different names for it. People know about the Internet, and with that came the stock market's day traders dealing in shares, options and warrants. And all brokers had to deal with the Internet allowing them to be bypassed as software enabled people to place buy and sell orders direct.
With the Internet and very smart and fast software programs, currency market trading was finally liberated from the monopolies held by large banks, brokerage firms and International trading corporations. The Internet brought forex currency trading potential to the masses. But in fact most investors focused only on stock market trading shares, options and warrants.
What is interesting is that in fact the forex currency trading market is massively bigger than the stock market. The Forex Currency Market has a higher cash turnover each week than the entire USA economy does in one year - and that is before the USA collapsed into recession.
And it is not just the size of the total currency market trading that takes place that is impressive; it is more that it is so huge that it is beyond the ability of any Government to control it fully. There is no central regulation of currency market trading. Sure the USA Government can make laws for brokers and traders in the USA, but when bad laws are passed people simply trade from an International broker - often just an overseas branch of their existing USA broker.
Forex currency trading is so huge that big business and the criminal element cannot manipulate it as they often and easily do with the stock market. There are no corporate raiders or takeovers in forex, no corporate lawyers leading stock market proxy fights. Currency market trading is simply the constant process of matching one currencies value against another currency in real time.
Let's assume a Middle Eastern Prince enters the market with 5 Billion Euros which he backs the Euro against the dollar. Yes, such a heavy-weight move may push up the value of the Euro by about 1 cent or a bit more over about 3 hours. But his timing had better be on the back of some bad news coming out of the USA, because the currency market trading volumes are so large that the 5 billion Euros could just as easily become 4 billion in that same 3 hours. Forex currency trading is so large that 5 billion Euro is nothing really considering the 2,500 billion euros traded each and every day, 5 days a week.
Given that big business and Governments are powerless to control or corrupt the forex currency trading market, what chance does the little guy or gal have? Every chance and the same chance as the large player does, simple as that. The only difference you will find is the points spread that bigger and smaller forex traders pay. I pay 0.9 pips anyway, so I am not concerned about that at all. My main concern is that currency market trading is a level playing field that cannot be rigged - and it cannot. So, that leaves the very smart 4x trading software like metatrader and forex robots we all have available, and the best of proven forex strategies we all have the ability to learn. We all have the power to work to a successful money management plan.
By all means visit my free website where I go into a lot of detail about currency market trading, the many forex robots and expert advisors available, and also what forex strategy can do for your forex currency trading. - 23222
Many people do get confused about the names. This comes from the fact that many people know so little about forex currency trading, and so the general confusions they have about currency market trading extends to all the different names for it. People know about the Internet, and with that came the stock market's day traders dealing in shares, options and warrants. And all brokers had to deal with the Internet allowing them to be bypassed as software enabled people to place buy and sell orders direct.
With the Internet and very smart and fast software programs, currency market trading was finally liberated from the monopolies held by large banks, brokerage firms and International trading corporations. The Internet brought forex currency trading potential to the masses. But in fact most investors focused only on stock market trading shares, options and warrants.
What is interesting is that in fact the forex currency trading market is massively bigger than the stock market. The Forex Currency Market has a higher cash turnover each week than the entire USA economy does in one year - and that is before the USA collapsed into recession.
And it is not just the size of the total currency market trading that takes place that is impressive; it is more that it is so huge that it is beyond the ability of any Government to control it fully. There is no central regulation of currency market trading. Sure the USA Government can make laws for brokers and traders in the USA, but when bad laws are passed people simply trade from an International broker - often just an overseas branch of their existing USA broker.
Forex currency trading is so huge that big business and the criminal element cannot manipulate it as they often and easily do with the stock market. There are no corporate raiders or takeovers in forex, no corporate lawyers leading stock market proxy fights. Currency market trading is simply the constant process of matching one currencies value against another currency in real time.
Let's assume a Middle Eastern Prince enters the market with 5 Billion Euros which he backs the Euro against the dollar. Yes, such a heavy-weight move may push up the value of the Euro by about 1 cent or a bit more over about 3 hours. But his timing had better be on the back of some bad news coming out of the USA, because the currency market trading volumes are so large that the 5 billion Euros could just as easily become 4 billion in that same 3 hours. Forex currency trading is so large that 5 billion Euro is nothing really considering the 2,500 billion euros traded each and every day, 5 days a week.
Given that big business and Governments are powerless to control or corrupt the forex currency trading market, what chance does the little guy or gal have? Every chance and the same chance as the large player does, simple as that. The only difference you will find is the points spread that bigger and smaller forex traders pay. I pay 0.9 pips anyway, so I am not concerned about that at all. My main concern is that currency market trading is a level playing field that cannot be rigged - and it cannot. So, that leaves the very smart 4x trading software like metatrader and forex robots we all have available, and the best of proven forex strategies we all have the ability to learn. We all have the power to work to a successful money management plan.
By all means visit my free website where I go into a lot of detail about currency market trading, the many forex robots and expert advisors available, and also what forex strategy can do for your forex currency trading. - 23222
About the Author:
Phil Jarvie writes extensively on 4x trading related matters and is an experienced forex trader. Feel free to visit his free website for details on forex robots, expert advisers, 4x trading, 4x trading software and forex currency trading, fx currency trading and currency market trading articles.
posted by X - Men @ 9:51 AM
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