We all know much about the Forex trading system, but below are some common questions that you and I may want to know.
1. Other than the point of providing greater liquidity, what are the major benefits given by the foreign currency market and the whole Forex trading systems?
The main advantage is there is less to think about when traders look into the forex markets, in fact there are only a few variables that actually affect the pricing. On the other hand, Forex Market always allows twenty four hour trading access. The market actually offers greater leverage, most brokers would offer 100:1, and most importantly, there is less starting capital needed from the trader. About greater liquidity, the day trading has to grow in enough volume to make it worth for more participants to compete. The currency market is actually more liquid than the coalition of all the world stock markets. Currencies are in action at all times.
Also Forex trading offers free trading systems, and they are taking away the factor of shorting - there are always human controls that are built into the market, in order to prevent the market from going down too rapidly. The world is driven by psychological factors, people like to see curves go up instead of smashing down. this kind of artificial intervention is called the 'uptick rule' when people are shorting stocks, they would find it more difficult to sell their personal stock short than to purchase it. This is something that would not occur in the currency market. For example, to sell currencies short in day trading means as easy as to buy them. This situation is very ideal for traders who aim to trade short-term.
2. When people consider many things about automated trading robots, because of the fact that the foreign exchange market has been expanding ever since, and become the world's biggest financial market, its size is huge, with more than $1.5 trillion USD transaction of trades involved daily, where are we going from there?
As a matter of fact, the purchase and further updates of Forex robots will increase very rapidly. The FX market is very diverse and unique, in the United Kingdom there is a lack of central exchange, people usually trade via the interbank market system. Now the situation is definitely changing and will keep on changing, there are increasing amounts of private counterparts taking up the business of margin trading. Moreover, there are new forex brokers being established every day, what we can say for sure is the market will even grow in multidirectional in the near future.
