Imagine a market that never closes.. That you always get the price quoted.. Is completely liquid...Is so HUGE, no one cares when you "dip" in and scoop out your small share from the Pot of Gold.
Unbelievable?? Yes! But absolutely true.
It's the largest financial market in the world. Trading over $4 Trillion a day. In comparison, The New York stock Exchange trades a measly $24 Billion a day and the Commodities market in Chicago does around $86 Billion. This market is ideal for the confident, risk-tolerant investor, who is tired of the irrational price movements on the stock market....
Who is fed up with the housing collapse.. and no longer cares if oil goes to $200 or $50 a barrel....
If you are not risk-tolerant, put you money in GIC at 2.56% and watch inflation erode the value of your investment.
Are you are ready to move up and play on an even footing with the "Big Boys" in a market that completely over shadows stocks, bonds, commodities, options and housing?
Everyday, every hour, governments, banks, major corporations and individuals buy and sell foreign currencies. You do it every time you go on a vacation outside your home country. Whether it is pay off foreign debts, import or export goods, or for tourist trips, money in constantly moving from one currency to another.
Until recently, the Foreign Exchange Market (Forex) could only be traded by Fortune 500 companies, major banks, governments and the ultra-wealthy. In the "Good Old Days", this Pot of Gold was only available to those with ten to fifty million dollars to play with. Today, it is open to anyone with a couple grand. It used to be that only huge banking concerns, hedge funds, governments and the extreme wealthy could bet on how current events would affect the value of world currencies.
But no longer...
With the Internet, desktop trading
Platforms, deregulation and globalization, anyone can profit from the currency moves in the fast-paced, 24/7 market. Today, you can pull out as much as you want from the pot of Gold at the end of the Forex Rainbow.
Here's how...
Even people who have heard about Forex shy away because they think its complex. Actually, it is very simple. Forex investors make money by trading money.
11 reasons why the World's Financial Elite use Forex as their personal Pot of Gold...
1. Money is made as currencies rise and fall.
2. You can make money almost every day of the week-Forex is traded 24 hours a day, 6 days a week.
3. There's more money to be made in Forex, faster, compared to any other market. Forex overshadows all other markets combined.
4. The Forex is well analyzed.. there's an enormous amount of data from which to make your trading decisions.
5. The liquidity is the best of any market (there are always buyers and seller)
6. There are no insider-complete transparency (a refreshing contrast to Enron and other balance-sheet abusers) and no "house advantage" for the banks.
7. The lowest transaction costs of all the financial markets (which means you get to keep more of your winning trades).
8. Buy and sell sides are treated equally, because when you buy one currency, you simultaneously sell another.
9. You never have to worry about having your money tied up and being unable to sell the asset. Even on September 11, 2001 when the U.S. stock market was suspended for the three days, the forex market was still trading worldwide.
10. Currency trading is a great method for diversification-your results do not depend on the phase of the business cycle. Boom...Bust...Recession...Forex traders don't care.
11. Minimize your level of risk in two ways-first, you can invest at the standard 100.1, or you can choose a more conservative strategy to lower your risk. Second, every position smart Forex traders take uses a stop-loss.
Global Forex Trading: Understanding How the World Market Works
If there is one truly significant difference between the Forex market of the world and their counterparts in stocks, bonds, futures, commodities or any other trading market you can think of, it would have to be the fact that the Forex market is truly international. When you are trading stocks there are always going to be hurdles to investing in foreign companies and the same is true for futures, commodities and even land because the government has direct control over all of those things and it can exercise that control wherever it feels the situation warrants it.
The forex market on the other hand is simply about exchanging one currency or another. Aside from limitingthe amount of currency they have available and therefore limiting the liquidity in the marketplace, governments can do absolutely nothing to prevent international exchanges of currencies and for the reason when you trade with Forex, you are truly participating in global Forex trading in the most basic sense of the term.
Another advantage that the Forex market has that places it apart from all of the other trading markets is that it works around the clock. This is related to the point made in the previous paragraph about Forex trading being truly international. If you wake up at two in the morning and decide you want to sell or buy some stock in a company, you are out of luck until the start of the business day seven hours later.
You may be able to buy or sell the stock of companies in countries that are in their trading hours at the current moment in time, but even there you are going to be restricted as most countries place restrictions on how much of their private sector can be owned by foreign nationals. This is certainly true in the case of both the United States and China and they collectively represent more market share internationally than all of the other countries combined. forex markets on the other hand are truly international and this means that when the United States in finished with its business day, the business day of countries in Asia is just starting. You can trade Forex around the clock if you want to and for someone looking for day trading opportunities that is a very helpful factor indeed.
In conclusion, it is important to appreciate the harmonization and synchronicity of the global Forex market because there is absolutely nothing else like it in any financial sector. The uniqueness of Forex trading is precisely what allows you to trade Forex from the comfort of your own home in your bathrobe and it is that same uniqueness that makes Forex trading so popular. The popularity of the type of trading injects more liquidity into the market, making them look even more attractive and bringing in new investors in a self-perpetuating positive feedback loop. No other trading market in world history has ever had as stable a growth curve as the overall Forex market. And this, in the end, is what makes global Forex trading so special.