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[O106]On The Global Market

by Arkaitz Arteaga, Ark

So why trade in the global Forex market? There are options to go into other areas such as the stock market, mutual funds, bonds, commodities and property just to name a few. All of which have varying risks and returns that are associated with them. So what is the appeal of the global Forex market then?

Although there is a risk in entering the global Forex market along with it comes the potential for high amounts of return. Its popularity is linked to a few reasons, firstly is there are no brokerage or agent fees. There is no need to sign up or register and access to buy and sell is often available 24/7. This is generally why the Forex market is bigger then both the stock market and commodities market.

At any time of the day there are transactions being made which alone increases volume.

The key to successful Forex trading is always leverage. It is what speeds up a trader's ability to profit from small investments. For example, if you choose to leverage shares most agents only allow additional trading of around 50% to 75% of the share value. So in a case where you have $100,000 worth of stock the maximum amount of additional stock you can buy would be $75,000. In the Forex market if you have $100,000 worth of currency you can get leverage of up to 100% of your margin. There is more leverage given because currencies are far more liquid then stocks.

But still research shows that only 10% of traders in the Global Forex Market turn profits consistently. The key to their success is being able to take advantage of price movements regardless if their day traders, position traders or swing traders.

To get a better understanding on Forex trading, it is best to try demo trading. This will allow you to play with currencies and create a test portfolio. There will be no actual money involved but you get to work with live real time prices and it will create a “mock” portfolio. The currencies and prices will all be real so it will give a risk free assessment of your ability to trade in the Global Forex Market.

For those looking for a profitable trading system, there is Broker Forex Trading. All that is required is a computer with a working internet connection. Traders don't have to be brokers to trade here.

Forex Global Trading is not as popular as the stock or commodities market among small investors. Mainly due to the complexity of predicting rises and falls of currencies. It requires a mind that can understand economic factors and view a wide array of variables. There are political, legal, commercial and industrial influences on price fluctuations plus variations caused by speculators and major traders like governments and hedge funds. It however is gaining popularity as small investors are beginning to see it as a lucrative market.

With the decision to become a trader, you must also choose what type of market you will focus on and what instruments you will trade. Will it be shares of publicly traded companies, commodity future contracts like oil and gold, or currencies.

Most of the financial markets that exist in the world today are within the framework of a central exchange, and for that reason they are limited in their scope and daily trading volume. Every market except one, which is the foreign exchange currency market.

The foreign exchange (forex) market has no central exchange, and instead it exists only as a highly interconnected web of bank servers and individual brokers. The 'over the counter' type of trading tends to be much larger in scope than trading centered around a central exchange (such as the NYSE), and for the reason the forex market is hands down the largest financial market in the world with daily volume surpassing $2 Trillion USD.

The forex market is the only true global market that exists, as it is not based in one specific country and instead is created by the perpetual buying and selling of banks and financial institutions in every major city, 24 hours per day.

Unlike traditional exchange-based markets which have set times that they are open and closed, the forex market literally follows the span of daylight around the planet.

When you are a forex trader you need to be familiar with the term 'global trading day.' The global trading day begins with the London market open hours (about 3AM New York time) and continues across all the major cities and time zones.

There are three distinct times throughout the global trading day when there is the most trading activity (and consequently the most liquidity). These times are based around the open-hours of the three major cities in the world where the largest volume of forex activity takes place: London, New York, and Tokyo.

So what does this mean for you, the trader? Because the forex is a global market and there are no set open and closed times, it is possible to trade at any time during the day (except on weekends).

It also means that due to the level of daily trading volume, this market is very liquid and it is virtually impossible to get 'stuck' with an open position.

Because of these lucrative trading features, many firms and brokers have sprung up to cater to the large demand of forex market access. Many of these companies offer highly advanced trading platforms that feature very low commission trading and seamless market entry/exit.

All in all, forex trading is by far one of the coolest ways around to make money today, since all you really need is a broadband-enabled laptop and a funded trading account to make money from anywhere in the world.

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About Author

Both Arkaitz Arteaga & Marcus Masters are contributors for EditorialToday. The above articles have been edited for relevancy and timeliness. All write-ups, reviews, tips and guides published by EditorialToday.com and its partners or affiliates are for informational purposes only. They should not be used for any legal or any other type of advice. We do not endorse any author, contributor, writer or article posted by our team.

Arkaitz Arteaga has sinced written about articles on various topics from Stock Market Crash, Finances and Stock. I have a degree in Computer Systems Engineering. I've been working in the world of forex trading and stock market investing. I also have been building a variety of websites for the last 3 years. Arkaitz Arteaga -. Arkaitz Arteaga's top article generates over 49500 views. to your Favourites.

Marcus Masters has sinced written about articles on various topics from Forex Trading Forex, Yoga Practice and Forex Trading Forex. Get more free education and ebooks about the forex market at , and also lea. Marcus Masters's top article generates over 18100 views. to your Favourites.