Commodity Forex Online Trading
With daily volume sales of around 3 trillion dollars a day, the Commodity Forex Online Trading market is by far the largest financial trading market in the world. Also known as Forex, the Commodity Forex Online is referred to as FX, Spot FX or even Spot.
If you have ever wonder how big the Commodity Forex Online Trading market is, then be prepared to be truly astounded. Indeed the New York Stock Exchange is a midget in comparison as it “only” trades an average of 2 billion dollars a day. In fact combine both the Stock and the Futures market, multiply it by Three and you’ll arrive at a market comparable to that of the Forex Trading market. Did you ever imagine it would have been as big as that?
And just in case you are asking yourself what is that banks trade in Forex Trading, the answer is simple. Money! Loads of it obviously and always in pairs! You see, the simultaneous exchange of one currency against the other is indeed what Forex Trading is and this exchange always takes place in pairs, as in Euro dollar for US dollar (EUR/USD) or the British pound for Japanese Yen (GBP/JPY). And when I mentioned earlier that Commodity Forex Online Trading market was traded by banks, I was partially right as you will discover later on in this article!
Back in earlier times, when money hadn’t been invented and things were seemingly simpler, local economies relied on the principle of bartering when one product was exchanged for another. The value of each product was set by how much the owner of each product thought their product was and this method held for hundreds of years. It is ironic that in this day and age, the Commodity Forex Online Trading Market is still based on a straight bartering exchanging system. Of course, today, the value of each currency is floated and thus independently determined, as opposed to how it was not so long ago when Forex was introduced.
Unlike traditional purchases, a currency is sought as a sign of investment in it’s country’s economy. The stronger the economy, the safer the trader is that his/her newly acquire currency will not only hold its current value but possibly be even stronger in the future. At times, a trader might forecast that a particular country is due for an upturn in its economy and decide to purchase currency from that very country.
The Commodity Forex Online Market is not only the largest in the world, but it is also unique in that it doesn’t have a physical geographical location, nor does it rely on a central exchange entity. Forex Trading is considered an over the counter market and does not have any restrictions in boundaries. Trading takes place through a network of computers communicating with each other, within a network of banks, 24 hours a day.
In the old days, back in the late 1990’s Commodity Forex Market was reserved for banks and large financial institutions who had the funds to be able to invest the required millions of US Dollars as “working capital”. Today, things have changed drastically since, through the rise of the Internet, smaller retailers and indeed moms and pops operations can trade in the Commodity Forex Online Trading Market.
Not only is the Commodity Forex Online Trading Business now accessible to all, but with the advent of technology, one doesn’t even have to have any prior knowledge of Forex to become an expert and successful trader. Indeed software such as Forex Killer make it now possible to bypass completely the learning curve and enter into this new and exciting market as a true expert.