The forex market operates worldwide and non-stop for five and a half days a week, every day it moves along with the sun: beginning in Sydney, to Tokyo and then Singapore, through the late Asian afternoon when London and other European centres open just as Asian markets are preparing to close. The European open initiates the heaviest trading volume of the day and by afternoon in Europe, New York opens, followed by Chicago, then Los Angeles. Just as sunset signals the closing of the US market, sunrise in Sydney starts a brand new trading cycle all over again.
By contrast, with the stock and futures markets, one would need access to electronic communication networks (ECN) for pre-market trading, or would have to wait till the markets open - and open sometimes with a gap if there has been news while the markets are closed. Since the Asian session is usually quiet for currencies like the Euro or Swiss Franc, we use this time to do market research, calculate and set up my trades for the afternoon when the European markets open. This gives me ample time to digest the news of the night before and the morning itself, which allows me to anticipate the movements of currency pairs later on in the day.
The wide availability of sophisticated technology has spawned a whole new level of foreign exchange, where self-directed (so-called “retail”) traders can easily buy and sell currencies through on interact connection with a click of the mouse, dealing with invisible counter-parties on the other side of the transaction. This group of people (also known as speculative traders) engage in trading forex for the sole purpose of making profits.
The forex market is the planet’s most liquid market. With more than $2 trillion changing hands every day, traders have no worries about liquidity when it comes to trading any of the big-economy currencies: USD, GBP, EUR, CHF, JPY, CAD, AUD and NZD. This is especially the case when they are paired up with the US dollar - at least 80 percent of foreign exchange transactions have a dollar leg. The London market accounts for almost one-third of the global total daily forcx turnover, and thus tends to be the most volatile session of the day, with the majority of forex transactions completed during the London hours due to the market’s liquidity and efficiency.
The unparalleled liquidity of forex translates into very little or almost no slippage when you trade during normal market conditions (not during news); there is rarely any discrepancy between the displayed price and the execution price.
Welcome to the new world of online forex trading
Forex has increasingly become an extremely attractive alternative asset group for speculators to trade, in addition to the usual staple of stocks and futures.
Anyone can trade forex, but not every one can be profitable. That’s the rule of any game. Forex is not an exception here.
At the same time it needs mentioning that forex is not a casino, not a game. All seasoned traders know that they need to learn more in order to earn more.
Those who are looking for effective forex software - please read the review of this forex software, before buying any.
It is obligatory to read reviews before buying forex software.
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