Currency Market Trading: Forex Currency Trading - What Is The Difference?
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.
There has always been forex currency trading, but prior to the Internet it was the exclusive domain of Governments, large banks and brokerage firms. Currency market trading then was opened up to the micro and mini forex day traders because of the widespread use of broadband internet and smart, fast and reliable software. It is interesting that most investors really only discovered stock markets when the Internet opened up all the markets equally.
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.
And it is not just the size of the total currency market trading that takes place that is impressive; it is more that it is so huge that it is beyond the ability of any Government to control it fully. There is no central regulation of currency market trading. Sure the USA Government can make laws for brokers and traders in the USA, but when bad laws are passed people simply trade from an International broker - often just an overseas branch of their existing USA broker.
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.
If a large currency market trading player enters the fx exchange market with billions of dollars, his effect on currency market trading will be short lived (maybe move the price 1 cent over 3 hours) and then his risk is the same as any other forex currency trading player. His billions are then at the same risk of the continuing changes in fx exchange values as the rest of us.
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. - 23199
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.
There has always been forex currency trading, but prior to the Internet it was the exclusive domain of Governments, large banks and brokerage firms. Currency market trading then was opened up to the micro and mini forex day traders because of the widespread use of broadband internet and smart, fast and reliable software. It is interesting that most investors really only discovered stock markets when the Internet opened up all the markets equally.
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.
And it is not just the size of the total currency market trading that takes place that is impressive; it is more that it is so huge that it is beyond the ability of any Government to control it fully. There is no central regulation of currency market trading. Sure the USA Government can make laws for brokers and traders in the USA, but when bad laws are passed people simply trade from an International broker - often just an overseas branch of their existing USA broker.
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.
If a large currency market trading player enters the fx exchange market with billions of dollars, his effect on currency market trading will be short lived (maybe move the price 1 cent over 3 hours) and then his risk is the same as any other forex currency trading player. His billions are then at the same risk of the continuing changes in fx exchange values as the rest of us.
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. - 23199
About the Author:
Phil Jarvie writes extensively on 4x trading related matters and is an experienced forex trader. Feel free to visit his free website for details on forex trading robots, EA expert advisors, 4x software, 4x trading and forex currency trading, 4x trading and currency market trading articles.
posted by X - Men @ 2:24 AM
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