Is Forex Currency Trading Different to Currency Market Trading?

October 2, 2009 | Filed Under Work At Home

by Phil Jarvie

Forex Currency Trading and Currency Market Trading are the exact same thing, and so also are the terms 4x trading, fx currency trading, fx exchange 4x currency trading etc all referring to the exact same thing. Which makes sense really in that no one will exchange Euro for Euro except to change denominations at a bank for a retail shop’s need for change. The emphasis is all on international currencies being exchanged.

Confusion about the long list of names for it comes from the fact that not many people know about it. With the Internet, investors became active and excited for share trading, options trading, warrants trading and even futures trading. However most people/investors have not really (yet) expanded their horizon to include forex currency trading.

There has always been forex currency trading, but prior to the Internet it was the exclusive domain of Governments, large banks and brokerage firms. Currency market trading then was opened up to the micro and mini forex day traders because of the widespread use of broadband internet and smart, fast and reliable software. It is interesting that most investors really only discovered stock markets when the Internet opened up all the markets equally.

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.

And it is not just the size of the total currency market trading that takes place that is impressive; it is more that it is so huge that it is beyond the ability of any Government to control it fully. There is no central regulation of currency market trading. Sure the USA Government can make laws for brokers and traders in the USA, but when bad laws are passed people simply trade from an International broker - often just an overseas branch of their existing USA broker.

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.

5 billion Euros is a lot of money. Let’s assume a very large player or even Government steps in to the forex currency trading market and lends support to the Euro. Unless the USA at the same time announce some poor economic data at the same time, that 5 billion Euro would have little or no effect when you consider that 2,500 billion Euros are traded on every normal day. Currency market trading is honest because it is too big to fool the free market’s operation.

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.

About the Author:

Phil Jarvie writes extensively on 4x trading related matters and is an experienced forex trader. Feel free to visit his free website for details on forex robots, expert advisers, 4x trading, 4x trading software and forex currency trading, 4x trading and currency market trading articles.

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