Forex: A Mass Marketplace

Filed under: Learn Forex Trading |

 

When you think about the foreign exchange market, you have to think about it on a truly global scale. It is a mass marketplace of gigantic proportions. When you look at a forex chart, it views very much like a company stock, moving up and down. But there is so much more to it than that.

 

There are a number of factors that affect the exchange rate between two currencies. You might immediately think of individual traders, just like yourself. But this makes up a relatively small section of the forex trading pie. The major participants include banks, commercial companies, investment firms, and central banks, which try to control the supply of money and inflation. All of these players have to be taken into consideration when trading.

 

You must also consider the various methods of trading. There are trading robots, which trade based upon a predefined set of parameters, and of course human traders who are more discretionary. There are also a seemingly unending number of methods of trading, and all of these are melted together when you look at a trading chart.

 

All of these different traders and methods of trading come together in the mass forex marketplace, and the result if over $4 trillion changing hands (not literally of course – but electronically!) every single day. This is why the forex market is such a challenge. It is the greatest game in the world, and one worth winning. But the price of playing is the expenditure of a lot of time  – as it is not an easy game to learn to play well. One must create a methodology with an edge, and one must employ that edge religiously over a long series of trades. To learn more, read some of our articles here at eforexsystemreviews.com.

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