What makes Forex trading unique

14-08-2012

Forex might be extremely popular right now, but it’s not a new thing. Foreign exchange market has been around ever since the first time one currency was traded for another. It’s the oldest and the biggest financial market in the world in terms of number of transactions and their value. Trades between central banks, multinational speculators, banks, corporations, financial institutions and even governments is an essential part of Forex market – but there’s plenty of action for smaller, independent traders as well. Some of the things that makes Forex trading market so unique, apart from the massive number of trades taking place every second are the geographical dispersion, the fluidity of the market, the twenty-four hour trading day and the number and variety of both traders and the factors that have an effect on the exchange rates.

One of the main factors that has a massive effect on the exchange rates are the news. Yes, the news – not some inside info that only the privileged few have access to. That’s another great thing about Forex market – there’s no inside traders. All Forex traders have the same chances, and in order to get all the relevant info, you just need to keep your ear to the ground and stay on top of the daily news. Some of the biggest, most profitable trades in the history of Forex trading (or any other type of financial trading to be honest) came from traders who were able to predict a market shift based on nothing more than the publicly available  information extracted from news broadcasts.

One of the best examples of using current developments in the world to decide on Forex trades took place in 1992. That summer, there was a lot of speculation surrounding England’s monetary and political position. Many experts believed that the European Monetary Union (EMU) was going to reject England, and that would severely affect the exchange rates and the value of the British national currency, the Pound. The founder and CEO of one of the biggest hedge funds in existence, the Quantum Fund decided to take advantage of this situation, and took action by placing a short position worth ten billion pounds. If England didn’t respond adequately, this was enough to further destabilize the Pound, and lower it’s value. Managers of the Bank of England tried to salvage the situation by selling off most of their Forex reserves, but the market was stronger. In September 1992, on a day that became legendary as the Black Wednesday, the Bank of England was out of currency to sell, and the Pound devaluated dramatically in a very short amount of time. England was forced to leave the EMU, and George Soros, the founder of Quantum Fund earned himself more than one billion dollars – becoming both famous and infamous in the process.

Using Forex market, one man was able to change world history, force an entire country to it’s knees and make a billion dollars  – all in the same day. With Forex, the possibilities are truly endless.

Forex Signals

12-08-2012

Forex has become a bit of a buzzword. A lot of people are talking about it, but it seems that not many truly understand what it is. The actual word “Forex is an acronym. Forex stands for “Foreign Exchange. In Forex trading, it’s the currencies of many different foreign [...] Continue Reading…

How to achieve better results on Forex market

10-08-2012

If you already know about Forex market, how does it work, what you should do, here are few advice on how to become better seller.

Being a better seller on the Forex market means, making better transaction, having better results, earning more money. There are no strictly rules how to [...] Continue Reading…

Essential influences on ForEx trading

08-08-2012

ForEx trading is pretty stable financial market and it provides options to acquire quite a lot of the money if you are cautious and well informed. Good instincts and appropriate temperament to go with them are always helpful. Still, it is all about the information. Who gets the right [...] Continue Reading…

Forex market open for everyone

06-08-2012

Getting to know forex market…
At this moment Forex market is the largest market in the world. There is only one type of merchandise bought and sold on this market, and those are foreign exchange currencies. Today forex market is open for all the people around the globe. In past [...] Continue Reading…

How to improve your Forex trading skills

02-08-2012

One of the best things about Forex is that it’s one of the few markets where even complete beginners have their chance in making it big. You probably heard of success stories that involve people with no prior experience or knowledge on stock market, but you have to keep [...] Continue Reading…

What you need to know about Forex trading before you dig in deeper

29-07-2012

Since Forex has been around for awhile on the Internet, I guess that a lot of you already have some passing knowledge about it. Maybe some of you have even tried it for yourself? I’m also guessing that it didn’t go very well for you. Do not despair. It’s [...] Continue Reading…

Top tips and tricks on Forex investments

27-07-2012

Like any other online market, Forex is a great way to make money, but also can leave you broke if you’re not careful on how you make your moves. You might get drawn to Forex exchange by hearing stories of everyday people with no prior knowledge in the stock [...] Continue Reading…

Important facts about the Forex trading

25-07-2012

Everyone wants to make some quick money and some of the people think that Forex is the right way, but that is not really the case. Sure, there are some successful businessmen who have managed to do it but that doesn’t mean that everyone is going to succeed. If [...] Continue Reading…

Dangers and advantages of ForEx trading

23-07-2012

Many men think that ForEx trading is gambling and they can’t be more wrong about it. This new market is one of the most complex financial markets in the world. It requires pretty large knowledge on economy and foreign policy. It also requires knowledge about politics and natural resources [...] Continue Reading…