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Is Forex Currency Trading Different to Currency Market Trading?
Posted by Phil Jarvie at Oct 2nd, 2009 in Home Business
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Many variations on the terms exist, including 4x trading, fx currency trading, forex currency trading, currency market trading, fx exchange and the list goes on and on. The main point is that it is all about buying and selling international currency, and the forex currency market is where the price is constantly being set in real time with each country being paired with another.
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.
I find it interesting and ironic that so many people have not yet discovered forex currency trading and yet they know the stock market so well. After all, the forex currency market turns over more cash in one week when the entire USA economy struggles to do a similar amount in the entire year.
Besides the sheer size of the forex currency trading market, well maybe because of its size and International, cross-borders nature; it is beyond the ability of any nation to control it with useless regulation and price fixing. There is no way to centrally control forex currency trading. Like, if/when the USA make new rules to try to control or manipulate forex, people simply move their cash to another jurisdiction. The operation a free market only truly exists with currency market trading.
Stocks and shares have mostly been manipulated and are only slightly influenced by the operation of the free market. Law and lawyers, misleading press releases by big business and/or outright fraud will always be found in the boom or bust cycle of share trading. Forex currency trading on the other hand is simply too big. Governments cannot write laws which can be manipulated by lawyers. Big business is tiny by comparison, and can only report their forex gains or losses to their own balance sheets; none of which could influence the total currency market trading system.
Let’s assume a Middle Eastern Prince enters the market with 5 Billion Euros which he backs the Euro against the dollar. Yes, such a heavy-weight move may push up the value of the Euro by about 1 cent or a bit more over about 3 hours. But his timing had better be on the back of some bad news coming out of the USA, because the currency market trading volumes are so large that the 5 billion Euros could just as easily become 4 billion in that same 3 hours. Forex currency trading is so large that 5 billion Euro is nothing really considering the 2,500 billion euros traded each and every day, 5 days a week.
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.
Feel free to visit my website where I go into great 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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