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:

Learn Currency Trading Strategies From An Experienced Trader And Highly Praised Coach

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WEBWIRE – Thursday, May 19, 2011

Learn currency trading strategies from Bernie Ebner, an experienced and highly praised coach with Successful Forex Traders. Foreign Currency Market (Forex) trading is fast emerging as the market to trade and with Successful Forex Trading, the Trading Coach Bernie Ebner helps novice traders Learn Currency Trading. With approximately $1.5 trillion US dollars trading on the Forex daily, it is attractive to traders offering them:

• 24 hour trading
• No commission trading
• High liquidity

The Forex market also offers traders a higher profit margin on their investments, which is why it is essential to learn currency trading.

    Forex traders must employ a combination of trading fundamentals as well as knowing some technical analysis to be successful Forex traders. To learn currency trading from a reputable coaching site such as (http://forexmarkettradingblog.com/learncurrencytrading) allows novice traders to use live demo accounts and have access to an experienced trader while learning currency trading. Trading is much like a high-performance sport. Athletes wouldn’t train without a private coach and traders shouldn’t trade without one.

http://forexmarkettradingblog.com/learncurrencytrading offers currency traders a user-friendly and intuitive platform that is more than a coach to help them learn currency trading, which includes:

1. An eBook ("The Trading Coach") written by Bernie Ebner filled with the exact fundamentals any trader should know, not only for Forex trading, but that will carry over to Futures markets as well.
2. A newsletter
3. Trading chat
4. Webinars and Seminars
5. One on One coaching

It is estimated that 96% of novice Forex traders will likely lose money and quit trading as a result. Here are some common reasons why that can be counteracted through being coached to learn currency trading:

• Not using enough capital
• Failing to manage a risk
• Being greedy
• Trading Indecisively
• Betting only on Tops and Bottoms
• A refusal to be wrong

To learn currency trading from a coach such as Bernie Ebner will help traders escape the pitfalls of novice trading to become a success and actually learn currency trading the right way.

How is currency trading done?

The Currency trading market is a multi trillion dollar market where world currencies are exchanged back and forth on a daily basis.

How is currency trading done?

Retail currency trading is typically done through brokers and market makers. Traders can place trades through their brokers who will in turn place a corresponding trade on the interbank market.

Why do currency values change?

Currency values can change for many reasons. Sometimes they react to political and economic news, sometimes they are driven by speculators, and sometimes they are driven by international business flows. If companies in the United States are importing large quantities of products made in Europe, they will need to exchange their US Dollars for Euros to pay for the products. When this is done in very large quantity over a short period of time, it raises the demand for Euros and the value of the Euro versus the US Dollar increases. This happens because dollars are being sold on the open market, while Euros are being bought.

Is currency trading risky?

Currency trading can be very risky. Currencies tend to be very volatile compared to other markets. The real key to success with currency trading is to use conservative risk management. There are many components to effective currency risk management, but the bottom line is to use caution and have a trading plan.

Who trades currencies?

Currencies are traded by individual retail investors, financial institutions, and corporations doing business. Retail investors and banks are trade to make profits and corporations usually trade in the normal course of the international business process.