Wednesday, February 29, 2012

Currency Trading Market Introduction

      Currency is the ultimate commodity. A foreign currency trade takes place every time a company or government buys or sells products or services in a foreign country; one currency is exchanged for another. A large number of individuals and organizations also do currency trading for speculative purposes. Consequently, it is no surprise that the foreign currency exchange market, also known as "forex" or "fx" market, is the largest financial market in the world. The currency trading market is much bigger (trades more volume) than all the world's stock markets put together. No other financial market even comes close to its sheer size and global reach.
To get an idea of the unbelievable size of the currency trading market, we have to look only at the growth and daily volume in foreign exchange activity. From 1997 to the end of 2000, daily currency trading volume surged from 5 billion to 1.5 trillion dollars. The currency market continues to grow at a phenomenal rate.
In the past, only corporations and wealthy individuals could trade currencies in the currency market through the use of bank proprietary trading systems, which required at least US$1 million to open a trading account. That was before the Internet came along. Now, the market is totally changing. Thanks to modern advancements in online trading technology, investors with only a few thousand dollars can now have 24-hour access to the online currency trading market.
     For day traders and swing traders, the currency market provides an alternative to stock market and futures trading. A trader only has a few major currencies to trade (the Dollar, Yen, British Pound, Swiss Franc, and the Euro are the most popular), whereas he is faced with tens of thousands of stocks to choose from. Currency trading also provides greater leverage than stocks and futures, and the minimum investment required to open a currency trading account is much lower (increasing leverage increases risk). All of these advantages compounded with the ability to choose flexible trading hours (currency trading goes on around the clock), has resulted in many stock traders deserting the stock market to day trade currencies. If you want to try out currency trading, click on the link below:

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