Forex trading, the 24-hour global electronic network that offers an “over-the-counter trading” that once you try it – you'll be asking yourself why it hasn't been part of your investing toolbox before.
Wall Street Journal Europe says ten major currencies account for 73 percent of the total forex trading volume. Among the currencies mostly traded are the US, Canadian, and Australian dollars; Euro; Yen; and Swiss Franc. A study conducted by the Bank for International Settlements says that the most traded products are Euro/USD, USD/JPY, and GBP/USD. Traders from all over the world join online trading platforms such as XTrade, to implement their investment strategies.
Large multinational companies engage in forex trading, using secure platforms such as XTrade when they are buying from and selling goods to other countries. However, this kind of forex trading encompass only a small portion of the daily activities in the foreign exchange market. Most of the trading activities are carried out by currency speculators who earn from the changes in value of a particular currency.
Being able to trade anywhere, at any time, night or day means that's no need of an exchange floor, it operates through a global electronic network where trading occurs over the telephone and online platforms such as XTrade. This is excellent in today’s fast paced living; you get results with time consuming delays. Forex is like a live action battle, with real time results, making it an exhilarating and quick investment strategy. Knowing immediately whether you made a significant gain or suffered a loss makes it easier to navigate your next financial move.
The big winners
Big money means bigger investments and bigger profit. The more you are willing to trade with, the greater the risk – but also the potential upside. For most investors trading within the 1000 – 20.000 USD/EUR range, a single big trade would constitute anything over three thousand of your currency. This is a drop in the ocean for big players. BIS study shows that more than 50% of the forex trading transactions are interbank transactions. This means the biggest players are the banks. Trading revenues of most commercial establishments and currency speculators are deposited in the bank. Central banks also play a big role in the forex trading market. These banks control the supply of money, interest, inflation and target rates in order to stabilize the forex trading market.
Building wealth takes time. People are making some serious cash in the forex market. Forex millionaires do exist, in the sense that there are people who sit in front of their computer looking at the same MT4 charts as you. But why do you lose? Why do they win? Forex requires a lot of patience, persistence, and discipline, which means even when suffering losses, you need to learn not to give up. Experience means analyzing the losses as well as the wins. Some online platforms such as XTrade have lots of resources to help you learn how to trade and keep your trading history available for you to learn from.
Millionaires that are successful Forex traders, have all suffered multiple losses. Even though they had losses, giving up wasn’t an option for them. With every fall, there was a new lesson learned. It’s these qualities that helped to make them the investors they are today.