Forex trading is all about trading 2 countries currencies against each other. This is usually traded through a broker who will handle all exchanging of the funds. There are not just hundreds or thousands of people trading forex each and every day but millions of individuals that are trying to get a piece of the forex pie. Financial conditions make the forex mart go up or down. It is estimated that around 3 trillion USD are trading in the Forex market daily between the largest countries, about 36 currency pairs.
Most of the FX trading is traded by bankers themselves, around 50% of the fx market. Bankers are continuously trading in the forex and have mastered the forex market in order to bag some enormous profits for their stockholders and for bettering their organization, so if big traders are there then there is definitely potential for small investors to make some serious capital there too because all trader has the same access to the FX market. It all comes down to how well you can read the market.
A number of really large infomercial companies are also involved in the forex marketplace as there are great potential profits to be made. Large commercial companies such as Citi Group, HSBC, Deutsche, JP Morgan and Goldman Sachs just to name a few, simply trade to better the stock holders. Some of the smaller companies are not involved in the forex market for the simple reason that they do not yet understand the market.
The Central Banks are the banks which hold the international roles within the foreign exchange markets. They are the ones accountable for interest rate fluctuation and supply and make money available to all. The Central Banks are located in London, New York and Tokyo and plays a enormous part in forex trading. These 3 locations are not the only central banks but they are amongst the largest in the FX market. As much profit there is to make while trading forex there is an equal amount of risk involved and large losses are very common in every day trading.
All forex trader before trading the real market needs to have excellent knowledge about trading and how it all works and fits together. It is imperative that a trader is prepared before sitting down to trade.
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