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Thursday, September 3, 2009

Currency Market Trading: Forex Currency Trading - What Is The Difference?

By Phil Jarvie

Many variations on the terms exist, including 4x trading, fx currency trading, forex currency trading, currency market trading, fx exchange and the list goes on and on. The main point is that it is all about buying and selling international currency, and the forex currency market is where the price is constantly being set in real time with each country being paired with another.

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.

Most people did not really notice the liberation of forex currency trading from the clutches of the banks and large corporations. The big boys had a monopoly on forex since the dawn of International trade, until the Internet also gave way to Forex currency trading by small and micro-sized currency market trading.

I find it interesting and ironic that so many people have not yet discovered forex currency trading and yet they know the stock market so well. After all, the forex currency market turns over more cash in one week when the entire USA economy struggles to do a similar amount in the entire year.

Besides the sheer size of the forex currency trading market, well maybe because of its size and International, cross-borders nature; it is beyond the ability of any nation to control it with useless regulation and price fixing. There is no way to centrally control forex currency trading. Like, if/when the USA make new rules to try to control or manipulate forex, people simply move their cash to another jurisdiction. The operation a free market only truly exists with currency market trading.

Stocks and shares have mostly been manipulated and are only slightly influenced by the operation of the free market. Law and lawyers, misleading press releases by big business and/or outright fraud will always be found in the boom or bust cycle of share trading. Forex currency trading on the other hand is simply too big. Governments cannot write laws which can be manipulated by lawyers. Big business is tiny by comparison, and can only report their forex gains or losses to their own balance sheets; none of which could influence the total currency market trading system.

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.

Given that big business and Governments are powerless to control or corrupt the forex currency trading market, what chance does the little guy or gal have? Every chance and the same chance as the large player does, simple as that. The only difference you will find is the points spread that bigger and smaller forex traders pay. I pay 0.9 pips anyway, so I am not concerned about that at all. My main concern is that currency market trading is a level playing field that cannot be rigged - and it cannot. So, that leaves the very smart 4x trading software like metatrader and forex robots we all have available, and the best of proven forex strategies we all have the ability to learn. We all have the power to work to a successful money management plan.

Feel free to visit my website where I go into great 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. - 23217

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