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| FOREX TRADING |
What is forex Trading, it is exchange of currencies i.e., we sell currency to the bidders who were bidding (willing to buy) for it and in exchange we take another currency which they were willing to give at bid rate. In the same manner we will buy currency and in exchange we will give another currency at their ask rate (willing to sell). Simply the mutual EXchange of FOReign currencies is FOREX.
The daily turnover of forex market crossed 4.2 trillion dollars, which is the highest turnover than any other STOCK/SECURITIES exchange boards and liquid markets like New York Stock Exchange (NYSE), London Stock Exchange(LSE),ETC.
The volatility of amount is very high in forex market. There are few reasons why it is that much big and volatile.
CURRENCY
- The first and the far most reason is currency, yes every nation has its own currency which shows the country economical power, strength and value comparing to other nations.
- So, it is very important for a nation to look over its currency behavior.
- This makes the banks, big firms, investors, traders and everyone to put some money and trade with the currencies.
TIME
- The second reason is Time, yes Forex market is open for 5 days a week.
- It starts when it is Monday 10:00 am in New Zealand and stops when it is 5 pm Friday in United states.
- This attracts everyone as market is open all over the week except two days and those two days are Saturday and Sunday (weekend days) 24*5.
MARKET REACH
- The third reason is its reach, yes I think there is no other market which reached the common people around the world like the FOREX MARKET.
- It may be due to broker or their promotions to attract new customers. Whatever but 90% of trader’s play very small role while the remaining 10% plays big role in manipulating the currency.
PLATFORM
- The last reason is platform, yes they make everything very easy for traders and today we have different types of platforms like meta trader, ninja trader, mobile trading platforms and all other web trading platforms.
- Every platform brings new traders in it own way but the brokers play key role in providing demo accounts through platforms which helps new and amateur traders to practice.
- Even big players use demo account to test new strategies and systems, Expert advice, etc., after practicing one can invest real amount.
There are so many reasons which make FOREX BIGGER & BETTER