If you have ever wonder how big the Online Forex Trading market is, then be prepared to be floored. On an average, transactions of the volume of US $ 2 trillion come about globally each day in online forex trading.
If you combine both the Stock and the Futures market, multiply it by Three and you’ll arrive at a market comparable to that of the Online Forex Trading market.
If you’re wondering what is it that banks trade in Online Forex Trading, the answer is simple. Money! Lots of it (no pun intended) and typically in pairs! The simultaneous exchange of one currency against the other is indeed what Online 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 Online Forex 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.
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 acquired 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 Commodiies Online Forex Market is not only the largest in the world, but ironically it doesn’t have a physical geographical location, nor does it rely on a central exchange entity. Online 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.
Online Forex Trading….Big Enough for the Small Folks
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 now trade in the Online Forex Trading Market.
Not only is the Online Forex Trading Market 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
Learning Online Forex Trading
An Online Forex Trading video training course is among the most effective learning tools for enabling students to master the art of trading. Forex coaching and live seminars form forex experts may not be cost effective for individual or novice forex traders, so an Online Forex Trading video may in fact be a great alternative. Also, an Online Forex Trading video can be viewed at any convenient time and replayed at your own pace. There may be sections that warrant repeated viewing while other sections can be viewed briefly or skipped. The video format for learning has proven to be extremely effective for learning Online Forex Trading principles quickly.