Q1: Considering that the forex market has become the largest financial market in the world, with over $1.5 trillion traded daily, where do you go from here?
A1: The foreign exchange market is unique, in the UK there is no central exchange, we operate through the interbank market. With more and more private individuals going into margin trading and new forex brokers being created, I can only see the market growing in the near future.
Q2: Apart from great liquidity, what are the main benefits of the forex market?
A2: There is less to consider when trading the forex markets, there are just a number of variables that affect the price.
The main advantages include
Forex Market allows trading 24 hours
Higher leverage: most brokers offer 100 – 1,
Less initial capital required,
More liquidity – Day trading needs to have enough volume to make it worthwhile. The foreign exchange market is more liquid than all the stock markets in the world combined. Coins are always in action,
free trading systems
Better for shortening: There are built-in artificial controls on the market to prevent it from going down too fast. The reason is that we live in a biased world that likes to see things go up rather than down. One of these artificial contraptions is the “rise rule,” which comes into play when shorting stocks, making it more difficult to short a stock than to buy it. This is unheard of in the forex market. Selling currencies short during the day is just as easy as buying them.
Ideal for short-term traders:
Q3: Limited market access, liquidity issues after market hours, commission fees, capital requirements, and short/stop selling restrictions are just some of the issues investors face when considering other markets. . Given that the forex market removes many of these traditional barriers and therefore does not restrict the ability of forex traders to place a trade at the right time, are we likely to see an increase in trading volumes this year? ?
A3: With all these advantages, it is difficult for traders not to trade forex, online trading volumes across all products are increasing at a substantial rate, however, forex trading, efficiently among retail investors , is becoming very popular.
Q4: There is stiff competition among online forex service providers for retail forex traders with some claiming to offer the same degree of technical analysis enjoyed by the world’s largest banks and institutional traders. it’s possible?
A4: Technical analysis has come a long way, more and more forex providers now have partnerships with companies that provide analysis. However, the banks still have an advantage, the markets are not yet under a perfectly competitive economic model. Banks will always have access to information that is not readily available, ISX FX currently sources its information from multiple banks to fill this gap.
Q5: Do you subscribe to the theory that currencies are less volatile than stocks because the market is so much deeper?
Answer 5: As a gamble on the direction of a national economy, no currency has ever fallen 25 percent in one day, or imploded as quickly and completely as Enron or Parmalat. In the wake of those scandals, many companies are doling out information more cautiously, making it harder to get the real “scoop” on stocks. One problem with trading with too high leverage is that a surprise news item can wipe out one’s capital. If you treat forex trading like a business, including proper money management, you have a better chance of success.”
Q6: US Interest Rates: Low in a Decade; Global trade wars and fears of terrorism have dominated the headlines recently. What impact has this had on retail volumes?
A6: All of the above factors have led to a decline in the dollar. This, coupled with tighter regulation of brokers, has given investors more confidence in brokers. Also, the stock market crash has prompted people to seek out the profit opportunities offered by the forex market.
Q7: In the United States, the Commodity Futures Trading Commission (CFTC) has filed 58 actions against companies, since its new powers were granted in 2000. As certain brokers continue to abuse the system, investors’ money Sometimes it is not traded in the promised markets. What can investors do to protect themselves?
A7: Retail forex is essentially gambling as with any bookmaker there is always a risk that you will not make your profits or the odds will be heavily stacked against you. With tighter regulation and increased competition, this risk of default has largely disappeared. The risk of price manipulation still exists and this will never go away. Investors should ensure they have an independent pricing source and trade with a broker that offers real one-click trading.
Most brokers work on the basis of the law of large numbers, acting like the bucket shops of 50 years ago, not covering any positions and competing directly with their clients. This will always lead to price manipulation and further action will inevitably be taken by the authorities.
Q8: What is the best way for “forex newbies” to get involved in the market?
A8: As with any new form of trading, you need to know what you are doing, especially since there is margin involved. Take as much time as you need to learn this new trading skill well – practice everything you learn with a demo account before considering “live” with your own money. Investors should read books, attend seminars, and trade on paper until they feel comfortable with their strategy.
