Currency Market Trading: Forex Currency Trading – What Is The Difference?
Currency Market Trading and Forex Currency Trading for all intents and purposes are the same thing. People don’t trade US dollars for US dollars, except to make change at a bank for a retail shop. So the terms are referring to international currency being exchanged for a different country’s money. Fact is, you can also call it 4x trading, 4x currency trading, fx currency trading, fx exchange – they all are referring to the same thing.
But many people do get confused by these different terms, and I guess that’s because we all grew up with the Internet as being the biggest mega-trend in society in the last 10-15 years. With the Internet came the stock market’s day traders dealing in shares, options and banks. All the brokerage houses had to adapt to the new World of online day trading because investors could now place their own trades – brokers were reduced to advice only.
With the Internet and very smart and fast software programs, currency market trading was finally liberated from the monopolies held by large banks, brokerage firms and International trading corporations. The Internet brought forex currency trading potential to the masses. But in fact most investors focused only on stock market trading shares, options and warrants.
What is interesting is that in fact the forex currency trading market is massively bigger than the stock market. The Forex Currency Market has a higher cash turnover each week than the entire USA economy does in one year – and that is before the USA collapsed into recession.
When something like forex currency trading is 50 times bigger than the USA economy, it is impossible to centrally control. If collectively the World cannot agree on such an important issue as climate control, it is even more difficult to imagine forex control and so it will always be totally dependant on free market forces to control currency market trading.
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It is not so difficult to manipulate the stock market as all stocks will clearly fall within one jurisdiction, and Governments will make laws that interfere with the free market. Big business, the banks and brokers, their lawyers and/or criminals can always find a way to trick and defraud the innocent, small investor. But the sheer size of forex currency trading will always be a process of matching the values of one currency against another currency. In real time as defined by the constant process of currency market trading, no one is big enough to get a fix in.
If a large currency market trading player enters the fx exchange market with billions of dollars, his effect on currency market trading will be short lived (maybe move the price 1 cent over 3 hours) and then his risk is the same as any other forex currency trading player. His billions are then at the same risk of the continuing changes in fx exchange values as the rest of us.
So if big business and Governments seem powerless to manipulate forex currency trading, what chance does the small, mini or micro investor have? This is the beauty of currency market trading, because the operation of the free market allows for astute money management and strategic trading positions to be taken (like hedging). Add to this the very smart 4x trading software trading live at your desktop provides you with; even the modest forex trader can do very well indeed.
You are welcome to visit my growing forex only website where I go into much more detail about currency market trading, the many forex robots and expert advisors available, and also what forex strategy can do for your forex currency trading.
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