The Foreign Exchange market, also known as the FOREX market, is the most liquid and largest market on the planet. Its retail part appeared thanks to the development of the Internet, which allowed small investors to access this market through various trading platforms.
It can be said that the FOREX opened its doors to retail customers at the end of the 90s. At that time, the first online retail brokers began to operate. Although in reality this is a market that has been working for decades, previously it only accepted institutional clients.
Currently, the daily volume of the FOREX market reaches billions of dollars. Retail operators contribute around 5% of this amount, which corresponds to about 250 billion dollars.
Why is the FOREX market so big?
Large multinational trading companies, financial institutions, investment funds, and many other companies need foreign currency to operate. As you may understand, to buy currency on the Internet it is necessary to pay with a different currency, which creates a reasonable flow of resources.
The main reasons why the FOREX market is the best market to operate are explained below. It is possible that not all of these points apply to your needs or your trading strategy, but even so, it is important that you know them.
Mastering FOREX trading takes time, but once you get it, a new world of opportunities will open up for you. You can improve to become an account manager and start not only to take profits for your operations, but you can also get benefits for the commissions that result from managing the accounts of other people.
Maybe you have heard the following sentence: “The first rule of trading is to buy cheap and sell expensive”. As you know this phrase is related to the most traditional financial markets.
But, with the FOREX market, you can also sell the assets without owning them. That is, just like in the futures market, you can enter by selling being this option popularly known as “going short”.
Trading conditions are vital for the intraday operator profession. The commissions and spread in FOREX are quite low, which makes it the most attractive market to operate.
In fact, it is very possible to find that the spreads are only 1 or 2 pips. In addition to the spread, the FOREX infrastructure is highly developed, so the execution in this market is simply perfect. Currently, an order only takes a few seconds to execute.
As in the stock market, you can change the currency based on what you think is worth (or where it’s headed). The big difference with the FOREX is that you can trade up or down with the same ease.
If you think that a coin will increase the value, you can buy it, if you think it will decrease the value you can sell it. With such a large market, you will find a buyer when you are selling and a seller when you are buying, it is much easier than in other markets.
Don’t you know what cryptocurrencies are?
Well, they’re here to stay.
So, this time it is important to talk about this topic that is very fashionable especially for those who like short-term investment, because of the enormous possibilities they have.
Terms such as “cryptocurrencies” or “block chains” have become the buzzwords in the world of finance. With economic knowledge or not, people are beginning to realize that Bitcoin and Ethereum can be a reef.
Investing and trading with electronic currencies is becoming the latest in cryptocurrencies and, although it is not too late to get on the train, finding a way to do so can be an arduous task.
To get an idea: 1 Bitcoin (the cryptocurrency in vogue today) has been worth more than 13,000 euros, and it has fluctuated between a maximum of 15,200 and a minimum of 9,000 euros.
The cryptocoins are born of new technologies. They stem from what’s called a “blockchain”. It is a type of programming that will allow what is done to be seen by everyone. And that specific feature is what gives cryptocurrencies their security.
Although blockchain technology is still in its infancy, it will soon become something that everyone will use without really knowing how. For many people, it will be like going back to 1994, when the Internet or email was still in development.
To buy cryptocurrencies you should go to a house that sells them. It would have to be one of these private companies that are producers or that have a large cryptocurrency fund.
Now that you know about these two types of markets, you are ready to decide which one best suits your needs.