By far, the forex trading arena offers the most to the biggest group. If you were to ask any trader what they would like in an ideal trading market there would be three main responses…
1. Liquidity2. Accessibility3. Trending
These tree variables are a traders dream. A market that is liquid has tight spreads, and is cheaper and more profitable to trade. Easy accessibility is essential to the active trader. Forex; trading is conducted 24 hours a day 5 and half days a week. And a trending market is King. This allows for profitable trades to grow. As well as allow the trader to reverse and jump on the band wagon still. To the novice much of this may seem complicated, but it is just foreign to most people. The reality is that the forex trading market; is the easiest to follow and understand because of its broad nature. If you decide to trade currencies always do your homework. Make sure you check the economic calendar, forex trading market news, and geopolitical news. Doing this may not make you money, but it will keep your from taking on losses for no reason. Good luck in all of your trading endeavors.
Links To Companies Mentioned
Here is a list of the most active currencies traded
1. United States dollar2. Euro3. Japanese yen4. Pound Sterling5. Australian dollar6. Swiss franc7. Canadian dollar8. Honk Kong dollar9. Swedish krona10. New Zealand dollar
The US dollar accounts for over 84% of the daily forex trading volume. The Euro comes in at just under 40%, and the yen is just over 19%. Volume percentages are calculated on a 200% scale due to the cross rate variable. Spread prices for each currency are based off of the degree of forex trading volume.
Changes in technology
There have been so many advancements in the forex trading environment with the advent of computerized online trading. In 20 years the whole currency market has evolved out of the old broker dealer network into this giant electronic web of traders, banks, governments, and corporations. Everything functions at light speed. Everything was done over the phone in years past. Now currency traders access the market via computers, cell phones, and touchpad's.