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.
But many people do get confused by these different terms, and I guess that's because we all grew up with the Internet as being the biggest mega-trend in society in the last 10-15 years. With the Internet came the stock market's day traders dealing in shares, options and banks. All the brokerage houses had to adapt to the new World of online day trading because investors could now place their own trades - brokers were reduced to advice only.
Most people did not really notice the liberation of forex currency trading from the clutches of the banks and large corporations. The big boys had a monopoly on forex since the dawn of International trade, until the Internet also gave way to Forex currency trading by small and micro-sized currency market trading.
The irony is that Currency market trading, even though much less well known than the stock market, is massively bigger than the stock market. In fact, the World's forex currency trading turns over more money in 1 week than the entire USA economy does in one whole year.
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.
Feel free to visit my website where I go into great 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. - 23229
But many people do get confused by these different terms, and I guess that's because we all grew up with the Internet as being the biggest mega-trend in society in the last 10-15 years. With the Internet came the stock market's day traders dealing in shares, options and banks. All the brokerage houses had to adapt to the new World of online day trading because investors could now place their own trades - brokers were reduced to advice only.
Most people did not really notice the liberation of forex currency trading from the clutches of the banks and large corporations. The big boys had a monopoly on forex since the dawn of International trade, until the Internet also gave way to Forex currency trading by small and micro-sized currency market trading.
The irony is that Currency market trading, even though much less well known than the stock market, is massively bigger than the stock market. In fact, the World's forex currency trading turns over more money in 1 week than the entire USA economy does in one whole year.
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.
Feel free to visit my website where I go into great 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. - 23229
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 currency market trading and forex currency trading articles.
posted by X - Men @ 9:29 AM
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