Currency trades or fx trading is the trading of currencies. It has a market where people buy, sell, exchange, and speculate with the aim of making profits. Traders take part in the market from all over the world, and they can do so without stress as long as there are computers and internet connection in the area.
FOREX MARKET EXISTED BEFORE THE OUTBURST OF INTERNET TRADING
When you hear of currency trading, it seems synonymous with internet trading. It is almost impossible to see anyone trading outside a computer (or a phone) with internet connection. What people do not know is that before fx trading became so popular some years ago, it already existed. It was primarily dominated by hedge funds, large financial institutions, and multinational cooperation who are more like wholesalers in the market. Times changed and internet trading became famous, alongside trading in the retail level. Now, the fx market is dominated by retail traders.
THE FOREX MARKET IS THE LARGEST MARKET IN THE WORLD
You would not believe how many traders are in the fx market from all over the world, trading the same currencies. It is a real viable market, there is regular buying and selling at every point in time and this makes it the most liquid market on earth. As a fx trader, you can reinvest the profits you make in the market or you can cash them out instantly. The market is so fluid with a lot of buying and selling going on; a lot of profit making for people that know their onion, and probably losses (as is inevitable in every market).
THE FOREX MARKET IS DECENTRALIZED
The term “decentralized” means a market structure made of networks of various devices that enables any investor to create a market without a central location. There is no physical location where people go to buy and sell currencies, a fx trader can trade from anywhere in the world. To this end, there is no oversight in the market. Once you have the specified amount of money, you can sign up with anyone who claims to be a broker and start trading, all online. In the market, no one cares if the other is certified to trade or be a broker, so long as the person in question meets the requests of the market.
The content of this article reflects the author’s opinion and does not necessarily reflect the official position of LiteForex. The material published on this page is provided for informational purposes only and should not be considered as the provision of investment advice for the purposes of Directive 2004/39/EC.