Such an tremendous volume means that the FX market has the highest market liquidity available. For context, the daily volume of the FX market is twice the entire US annual budget and the four times the annual budget of the United Kingdom—that is how much money is being circulated in the FX markets.
A highly liquid market will tend to see prices move very gradually and in smaller increments. A less liquid market will tend to see prices move more abruptly and in larger price increments.
A large proportion of professional institutions such as banks, trusts, brokerage companies, foundations and multinational corporations are engaged with the FX markets.
As intermediaries between the currency market and individual or private traders, brokerage companies allow investors with varying financial capacities to execute transactions through the FX markets and earn substantial rewards through superior leverage.
C Currency Pairs Currency pairs are currently the most widely traded assets in the world, and they consist of one currency being traded in relation to another. Take the following currency pair for example:. As we already know from the previous chapter, FX trading, due to its high liquidity, allows us to trade on all volumes of currency against another without any difficulties.
Moreover, high liquidity means that a trade order may be closed almost instantaneously. It is due to two reasons: Firstly , the trading is carried out via electronic means, which means it occurs immediately with zero latency. S econdly , in any given moment, the market will be full with an overwhelmingly large number of buyers and sellers who create the high demand and equitable supply.
When it comes to FX trading, all traders have the ability to choose when and for how long they are going to trade and the time at which they are going to do so.
This is possible because of the round-the-clock nature of the FX market, which means you will be able to assert full control over your trading schedule. You have the ability to select your preferred trading strategy to take on the financial markets and use them to your best benefit to reap profits which will fully be yours to keep.
All you will need to begin trading in the FX markets is a PC or a mobile device with internet access—nothing more. When you trade with TDS, you will be able to download our trading platform in a few short steps and immediately begin trading to reap your profits. No matter where you are around the world or what it it is you prefer to trade, our desktop and mobile trading platforms ensure FX trading will always be simple and effective for you.
The Basics of Forex Trading. Build Your Foundation of Success. The Forex Market, an abbreviation of the foreign exchange market, is an international or inter-bank financial market for exchanging currencies. Being a global market, it is open round the clock from Monday to Friday, which differentiates it from national or individual stock exchanges, where trades can take place only during the working hours of the day. Furthermore, the Forex market, or FX market, is a frontrunner among financial markets in terms of total trade volume per day.
The FX market currently sees a turnover of more than USD 4 trillion on a daily basis, a figure which is projected to rise up to USD 10 trillion by The term liquidity mentioned in the earlier point refers to the capacity of a market to freely exchange almost any volume of one currency for another. Currency pairs are currently the most widely traded assets in the world, and they consist of one currency being traded in relation to another.
Take the following currency pair for example: Advantages of FX Trading.More...