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.
There has always been forex currency trading, but prior to the Internet it was the exclusive domain of Governments, large banks and brokerage firms. Currency market trading then was opened up to the micro and mini forex day traders because of the widespread use of broadband internet and smart, fast and reliable software. It is interesting that most investors really only discovered stock markets when the Internet opened up all the markets equally.
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.
Stocks and shares have mostly been manipulated and are only slightly influenced by the operation of the free market. Law and lawyers, misleading press releases by big business and/or outright fraud will always be found in the boom or bust cycle of share trading. Forex currency trading on the other hand is simply too big. Governments cannot write laws which can be manipulated by lawyers. Big business is tiny by comparison, and can only report their forex gains or losses to their own balance sheets; none of which could influence the total currency market trading system.
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.
So if big business and Governments seem powerless to manipulate forex currency trading, what chance does the small, mini or micro investor have? This is the beauty of currency market trading, because the operation of the free market allows for astute money management and strategic trading positions to be taken (like hedging). Add to this the very smart 4x trading software trading live at your desktop provides you with; even the modest forex trader can do very well indeed.
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. - 23305
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.
There has always been forex currency trading, but prior to the Internet it was the exclusive domain of Governments, large banks and brokerage firms. Currency market trading then was opened up to the micro and mini forex day traders because of the widespread use of broadband internet and smart, fast and reliable software. It is interesting that most investors really only discovered stock markets when the Internet opened up all the markets equally.
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.
Stocks and shares have mostly been manipulated and are only slightly influenced by the operation of the free market. Law and lawyers, misleading press releases by big business and/or outright fraud will always be found in the boom or bust cycle of share trading. Forex currency trading on the other hand is simply too big. Governments cannot write laws which can be manipulated by lawyers. Big business is tiny by comparison, and can only report their forex gains or losses to their own balance sheets; none of which could influence the total currency market trading system.
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.
So if big business and Governments seem powerless to manipulate forex currency trading, what chance does the small, mini or micro investor have? This is the beauty of currency market trading, because the operation of the free market allows for astute money management and strategic trading positions to be taken (like hedging). Add to this the very smart 4x trading software trading live at your desktop provides you with; even the modest forex trader can do very well indeed.
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. - 23305
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 exchange and currency market trading articles.
posted by Mr. Forex at
9:30 AM
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