Fair, fast, liquide: the forex market

Fair, fast, liquide: the forex market

Forex Market

2021-03-17 11:02:00

Even if the foreign exchange market is not so well-known as the stock market, it is significantly larger: Daily trading volume amounted to around 4 trillion US dollars ($ 4,000 billion in US dollars) in one month.  Of these, two-thirds of the futures market and a third of the Forex Kassamarkt were implemented.

Forex Trading: The advantages at a glance:

Practically infinite liquidity;
Continuous trading from Sunday evening to Friday night;
No manipulation of the courses by insiders;
Profits in every market situation possible;
Commission-free trade;
Low minimum payments;
Free professional tools;

The foreign exchange market is thus the largest market in the world and offers all market participants a virtually unlimited liquidity.  The major market participants at the Forex market are central and commercial banks, large industrial companies as well as funds, insurance companies and other institutional investors.

Forex: 4,000 billion dollars daily turnover

The trade in foreign exchange is completely decentralized - a "foreign exchange stock market" does not exist.  The major market participants are directly networked.  Private investors can enter the trade via brokers and market makers.

The practically inexhaustible liquidity offers all market participants and thus private investors benefits.  Thus, very large orders of individual actors do not lead to sudden price fluctuations with gaps, as they occur at the stock market again and again.  Private investors can virtually place each order at the desired price and will be safe to their immediate execution.

The danger of manipulation in Forex trading is also much lower than in other markets.  The price development of currencies can not be easily influenced by the targeted distribution of rumors.  Even insider knowledge plays virtually no role.

Non-stop trading without a break

Since the Forex market is organized decentralized and currencies are traded around the world, trading is rarely interrupted as e.g. in the stock market.  Due to the time shift, Sunday night until Friday night can be done consistently.  As a result, investors are not only more flexible.  Also certain risks, e.g. The risk of Opening Gaps are eliminated or reduced.

At the foreign exchange market, the appreciation of a currency can be set as well as the devaluation.  This is not surprising because the appreciation of e.g. is identical to the US dollar against the euro with its devaluation compared to the greenback.

This makes profits possible in Forex Trading in every market situation.  Traders can always find promising markets (= currency pairs) regardless of influences such as economic stimulus, interest rate development or consumer mood.  Since the foreign exchange market reflects many real economic conditions, investors can participate in a wide variety of developments.  An increase in commodity prices is as well as an impulse national debt of a particular country.

Online trading with professional platforms

The way to Forex Trading leads for private investors through the trading platforms of Forex Brokers.  Their figure grows as impressive as the scope of the services offered.  The trade is handled in real time: With a few mouse clicks, positions can be opened and closed.

Most Forex Brokers offer their customers a complete solution for trade.  The platforms also offer a free and consistent supply of real time courses, demanding charting applications, connectivity to the news of news agencies and other possibilities for research and analysis.  Also learning materials, such as seminars and webinars for beginners and advanced, are very often part of the offer.

Commission-free trade and low minimum payments

Due to the lush range of most platforms, additional investments for course data, chart analysis programs, etc. are not required.  However, the entry-level hurdles are not only moderate in this regard: Most accounts can be opened with manageable minimum deposits from about 100 euros.

Very few forex brokers demand more than 1000 euros.  Unlike trade with shares, Forex Trading is also suitable for smaller accounts: Trade in currencies is commercially free for practically all providers.  The brokers generate their profit from the money letter span (spread), which is between the purchase and sales course.  The width of the spreads is very different depending on the currency pair and broker.  It can also change constantly - depending on the daytime or general market conditions.


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