Friday, 2 October 2009

Is Forex Currency Trading Different to Currency Market Trading?

By Phil Jarvie

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.

Confusion about the long list of names for it comes from the fact that not many people know about it. With the Internet, investors became active and excited for share trading, options trading, warrants trading and even futures trading. However most people/investors have not really (yet) expanded their horizon to include forex currency trading.

Most people did not really notice the liberation of forex currency trading from the clutches of the banks and large corporations. The big boys had a monopoly on forex since the dawn of International trade, until the Internet also gave way to Forex currency trading by small and micro-sized currency market trading.

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.

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.

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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