Why Select Online Foreign Exchange Trading Over Stock Trading?

6 Jun 2010 by SSR, No Comments »

Online currency exchange trading is immensely popular and many stock traders are making the switch. The foreign exchange market is big, with nearly $4 trillion traded about every business day. That is more than all the stock markets of the world combined. At the same time, the amount of currency pairs available for trading is restricted with about 90% of the total trading happening in 10-20 currency pairs.

Compare this with the quantity of stocks that may be traded in only 1 country, and it is clear that the major currency pairs have many times the liquidity of any stock. This implies that it is generally simpler to get the price that you want at the time when you want it. However gigantic some of the investment funds of the huge world banks might be they do not hold much power individually in a trillion buck market. It is simply impossible for any establishment to manipulate the cost of a currency pair in the way that company stock costs can be manipulated. For a similar reason, insider dealing isn’t the problem it is in the exchange.

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