Currency Market Trading: Forex Currency Trading – What Is The Difference?
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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.
With the Internet and very smart and fast software programs, currency market trading was finally liberated from the monopolies held by large banks, brokerage firms and International trading corporations. The Internet brought forex currency trading potential to the masses. But in fact most investors focused only on stock market trading shares, options and warrants.
The irony is that Currency market trading, even though much less well known than the stock market, is massively bigger than the stock market. In fact, the World’s forex currency trading turns over more money in 1 week than the entire USA economy does in one whole year.
When something like forex currency trading is 50 times bigger than the USA economy, it is impossible to centrally control. If collectively the World cannot agree on such an important issue as climate control, it is even more difficult to imagine forex control and so it will always be totally dependant on free market forces to control currency market trading.
It is not so difficult to manipulate the stock market as all stocks will clearly fall within one jurisdiction, and Governments will make laws that interfere with the free market. Big business, the banks and brokers, their lawyers and/or criminals can always find a way to trick and defraud the innocent, small investor. But the sheer size of forex currency trading will always be a process of matching the values of one currency against another currency. In real time as defined by the constant process of currency market trading, no one is big enough to get a fix in.
5 billion Euros is a lot of money. Let’s assume a very large player or even Government steps in to the forex currency trading market and lends support to the Euro. Unless the USA at the same time announce some poor economic data at the same time, that 5 billion Euro would have little or no effect when you consider that 2,500 billion Euros are traded on every normal day. Currency market trading is honest because it is too big to fool the free market’s operation.
Given that big business and Governments are powerless to control or corrupt the forex currency trading market, what chance does the little guy or gal have? Every chance and the same chance as the large player does, simple as that. The only difference you will find is the points spread that bigger and smaller forex traders pay. I pay 0.9 pips anyway, so I am not concerned about that at all. My main concern is that currency market trading is a level playing field that cannot be rigged – and it cannot. So, that leaves the very smart 4x trading software like metatrader and forex robots we all have available, and the best of proven forex strategies we all have the ability to learn. We all have the power to work to a successful money management plan.
By all means visit my free website where I go into a lot of 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.
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