Forex trading Understanding Forex Trading The Right Way
Tuesday, October 12, 2010 8:17:34 AM
Trading in forex is done at the same time, both buying and selling. They have a turn over of 3million daily. This made them the largest market exchange in the world.
Since foreign exchange trading has minimal profit margins when compared with other trading markets, the perception is that it is less profitable. However, the large volumes within the foreign exchange has the potential for incredibly large profits for those who choose to trade there. Forex offers the direct trading for these parties, without a central body/middleman.
In FX market unlike stock markets where traders have access to the same prices here access is decided by levels.
Forex market conducts the biggest number of deals everyday as large number of investment is comprised by regular banks, central banks, retail brokers, corporations, and some independent investors. All of them participate actively in FX trading which results in majority of market turnover.
A financial institution can sell euro and purchase Japanese yen , or buy American dollars and sell British pound.trading of currencies take place either by financial institution or a individual trader.
The market of foreign trading has been increasing exponentially. London is the city with the biggest market,the city's trading center has accounted more than 30 percent of the global FX turnover.there are more than 30 percent of the global FX turnover benefit's in FX dealing ,like no money wasted on commission The presence of online channels and the 24-hour trading scheme keep investors updated when it comes to market trends and developments affecting the market. deals are done directly between two traders.
Deutsche Bank, Barclays and JP Morgan are the biggest traders of FX.While country wise London, New York, Hong Kong and Singapore are on top.Some other investments firms like hedge firms, institutional investors also play hands in forex trading.
Due to low cost of trading, high liquidity and currency exposure, forex trading become a very attractive investment option.
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