FOREX (Foreign Exchange) or better known as the Foreign Exchange (Foreign Exchange) is a type of trade / trade transactions that a country's currency against the currencies of other countries involve major money markets in the world for 24 hours continuously (starting from Monday morning dawn until dawn Saturday morning WIB / GMT +7)
According to the survey BIS (Bank International for Settlement of the world's central bank), conducted in late 2004, the forex market transaction value reached more than USD $ 1.4 Billion per day. And in 2006, the forex market transaction value has exceeded USD $ 2 Billion per day. Thus, the prospects in forex trading is very good because it is very liquid.
Given the level of liquidity and accelerating the movement of these high prices, FOREX also become an alternative to the most popular because it gained a brief advantage can sometimes exceed the average trade in general. Due to rapid movement, the FOREX is also very high risk if you do not have enough knowledge and risk management arrangements properly.
Source : http://www.gainscope.com/id.php
More Reasons to Like Forex
No Middlemen
Centralized exchanges provide many advantages to the trader. However, one of the problems with any centralized exchange is the involvement of middlemen. Any party located in between the trader and the buyer or seller of the security or instrument traded will cost them money. The cost can be either in time or in fees. Spot currency trading does away with the middlemen and allows clients to interact directly with the market-maker responsible for the pricing on a particular currency pair. Forex traders get quicker access and cheaper costs.
Buy/Sell programs do not control the market
How many times have you heard that "fund A" was selling "X" or buying "Z"? Rumor had it that the funds were taking profits because of the end of the financial year or because today is "triple witching day", all as an explanation of why this stock is up or the market in general is down or positive on the session. The stock market is very susceptible to large fund buying and selling, and it's not uncommon for a fund to run a particular issue for a few days. In spot currency trading, the liquidity of the Forex market makes the likelihood of any one fund or bank to control a particular currency very slim. Banks, hedge funds, governments, retail currency conversion houses and large net-worth individuals are just some of the participates in the spot currency markets where the liquidity is unprecedented.
Analysts and brokerage firms are less likely to influence the market
Have you watched TV lately? Heard about a certain Internet stock and an analyst of a prestigious brokerage firm accused of keeping its recommendations, such as "buy" when the stock was rapidly declining? It is the nature of these relationships. No matter what the government does to step in and discourage this type of activity, we have not heard the last of it. IPO's are big business for both the companies going public and the brokerage houses. Relationships are mutually beneficial and analysts work for the brokerage houses that need the companies as clients. That catch-22 will never disappear. Foreign exchange, as the prime market, generates billions in revenue for the world's banks and is a necessity of the global markets. Analysts in foreign exchange don't drive the deal flow, they just analyze the forex market.
8,000 stocks versus 4 major currency pairs
There are approximately 4,500 stocks listed on the New York Stock exchange. Another 3,500 are listed on the NASDAQ. Which one will you trade? Got the time to stay on top of so many companies? In spot currency trading, you have 4 major markets, 24 hours a day 5.5 days a week. Concentrate on the majors and find your trade.
