
There is no other market in the world that can compare itself to the foreign exchange market. With almost USD 2 trillion in daily average the Forex market is bigger than all the stock and bond markets of the entire world. A better way to understand its enormous size would be to compare it with any national stock exchange. Let's use the New York Stock Exchange as an example. The total volume of trading in Forex is more than one hundred times the daily trading on the NYSE on an average day.
With a volatile currency environment in this age of globalization and free market, the investors and financial institutions have found a new battle-field in the global Forex trading to prove their financial power and also to cut a sizable profit. Why do you think, this Forex trading has flown to such a great height in the recent years? Well, there are several reasons behind this immense growth.
The operations in stock market are supervised by a centralized exchange. But in Forex market you will not find any such exchange. It works on the "interbank" market, making it similar to an OTC or over the counter market. The two parties in the trade interact with each other directly either over telephone or through the electronic networks all over the world. Thus in Forex trading you do not have to pay commission to the share brokers for your every buy and sell of the stocks. And this opportunity of trading without commissions makes it particularly lucrative as an investment option for seasoned investors who frequently take part in day trading.
The five major cities of the world take the center stage in Forex trading and they are: Sydney, Tokyo, London, Frankfurt and New York. Thus unlike the domestic stock exchanges, Forex market is
functional internationally and the market operates 24-hour a day. Starting from Sunday evening (20:00 GMT) to Friday evening (22:00 GMT) you can carry on with your speculative endeavors in the Forex market. It lets you take the advantages of happenings world over affecting the markets internationally.
Then, Forex market is exceptionally liquid. You will always find buyers for your currency and sellers to buy from. If you are dealing in the major currencies, you can rest assured of the price stability and narrow spreads. It is mainly the leading banks with global presence that provide liquidity to investors, companies, institutions and other market players.
Leverage that you enjoy is rather high. It allows you to hold assets 100 times more than your margin deposit. Suppose you have a deposit worth of USD 10,000. It allows you to trade on the volume worth of USD 1,000,000 through leverage. Then you can leverage the first USD 25,000 of your investment up to 100 times. But for the additional collateral, you get the leverage up to 50 times.
It may sound very interesting to step into the foreign currency market in hope of making some profit, But be vary of the risks that are involved. The internet has made the opportunity open for everyone to become small time investors, but before stepping in this volatile world of foreign currency trading you should spend some time to learn about the implications and pitfalls that this market is entailed with.
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![]() Globe and Mail | FOREX-US dollar slips, but strong trend remains intact Reuters NEW YORK, Feb 8 (Reuters) - The US dollar drifted lower on Monday as a modest recovery in overseas stock markets and commodities ... WORLD FOREX: Euro Weakens As Negative Bets Hit Record Highs WORLD FOREX: Euro Down As G-7 Fails To Produce Greece Debt Plan Forex Daily Analysis |
![]() FXstreet.com The Forex Market | Forex: US Dollar mixed as EUR/USD hovers around 1.3650 CountingPips By CountingPips.com The US Dollar has been mixed in forex trading as movements against most of the major currencies have been muted with little economic ... Forex: Dollar and Yen showing strength on economic uncertainty Forex: EUR/USD pulls back to 1.3670 Daily Forex Outlook - Market Quiet, Still Weak |
Forex Strategy Outlook: US Dollar Likely to Move Sharply Against Euro Daily FX Forex options markets volatility forecasts continue to trend higher, pointing to major moves in the US Dollar and other major currencies through the coming ... |
![]() Financial Times | WORLD FOREX: Euro Sinks; Dollar, Yen Gain On Debt Concerns Wall Street Journal The dollar was at Y89.38, up from Y88.94, while the euro was at Y122.14, down from Y122.20. The UK pound was at $1.5631, down from $1.5750. ... Dollar will doom, Gold will boom: Jim Sinclair WORLD FOREX: Euro Losses Accelerate Amid Debt Worries WORLD FOREX:Euro Sinks Further;Markets Broadly Sell Off Risk |
![]() BBC News (blog) | WORLD FOREX: Dollar Loses Ground After Weaker US Job Data Wall Street Journal NEW YORK (Dow Jones)--The dollar gave up some overnight gains against the euro Friday morning after ... FOREX-US dollar, yen gain on Europe debt woes World Forex: Dollar gains as Euro and Pound sink on Sovereign Debt Concerns FOREX-Euro/dollar lowest since May on euro zone debt fears |
![]() Reuters South Africa | FOREX-Euro leaps after Swiss central bank seen buying Reuters It climbed against the dollar as it jumped against the franc, after hitting $1.3669 in earlier Asian trade, its lowest since late May 2009. ... Forex trends: buck's gaining ground vs European majors, but is sliding vs yen FOREX-Dollar rallies on risk aversion before payrolls Ldn FX: Euro Retains Heavy Tone; Dlr Boosted By Risk Aversion |
![]() FXstreet.com The Forex Market | US Dollar Forecast Remains Aggressively Bullish on Forex Options Daily FX Forex Futures and Options markets show that large speculators continue to bet on and hedge against further US Dollar strength—giving us a strong bullish ... Forex: Dollar consolidates gains ahead of NFP report FOREX: US Dollar, Japanese Yen surge today on risk aversion. Forex: Dollar and Yen rally further on concerns about economic recovery |
WORLD FOREX: Dollar Rallies On New Optimism For Jobs Growth Wall Street Journal NEW YORK (Dow Jones)--The dollar rallied Wednesday as stronger economic data boosted confidence that the key US ... |
![]() RTT News | FOREX-Dollar climbs vs yen; euro gains after 4-day fall Reuters NEW YORK, Feb 1 (Reuters) - The dollar rose against the yen on Monday, and higher-yielding currencies such as the Australian and ... WORLD FOREX: Dollar Helped By Strong US Manufacturing Data Forex trends: dollar shows mixed trading on ADP employment report expectations FOREX-Dollar retains broad gains, euro near 7-mth lows |
WORLD FOREX: Dollar Higher Vs. Euro On Sovereign Debt Jitters Wall Street Journal The dollar was at Y90.26 from Y89.97, while the euro was at Y126.40 from Y126.17. The UK pound was at $1.6243 from $1.6160. The dollar was at CHF1.0512 from ... FOREX-Dollar hits 6-1/2-month high vs euro; yen gains WORLD FOREX:Dollar Gains After FOMC Fuels Bets On Higher Rates WORLD FOREX: Dollar Pares Gains Vs Yen After Weaker US Data |