In the company of all investments revealed there that you can desire, why go dealing foreign currencies instead?
These days Forex is the world’s most liquid market. Its trading volume is relatively massive compared to other markets. It has ultimate liquidity or the functionality of either buying or selling the currency without producing important movement in the market price. It has the largest number and variety of professionals.It is one of the markets that have long trading hours (24 hours each day, except during weekends. Trading locations are almost in all places, not just in the United States or major cities of Europe. There are different factors that affect foreign exchange price.
An additional whooping detail that will make you excited to go on Forex trading: it has an average turnover in traditional foreign exchange market of around $2.88 trillion daily, relating to the Triennial Central Bank Survey of the BIS (Bank for International Settlements). Here are the daily averages of turnover on the Forex market for the last 20 years:
$500 billion (April 1989)
$750 billion (April 1992)
$1.18 trillion (April 1995)
$1.48 trillion (April 1998)
$1.16 trillion (April 2001)
$1.88 trillion (April 2004)
$3.88 trillion (April 2004)
$46 trillion (April 2009)
From the statistics alone, you will notice that the average pattern of Forex turnover is mounting. It is estimated to reach as high as 2 to 5 trillion dollars within the next 8 to 10 years, if the number of traders around the world will continue to increase. As a matter of fact, everyone have the chance of getting a substantial slice of the Forex market wealth pie, especially that the Forex trading marketing is now on its automation course.
The thought of mechanization turns into the new trend to the foreign exchange trading market. The Interbank spot Forex market has also considered switching to the automated technique as well.
There are quite a few benefits that a Forex trader can derive from automated Forex trading. Here are some of such benefits and figure out why Forex trading as well as other investments (futures and commodities) prefer the automated process.
Through automated procedure, ventures can now be done in real time. Although labor-intensive systems have existed for quite some time now, it is difficult to achieve such benefit that the automated Forex system can present to its traders. All of the trades can happen within a few milliseconds and can be a big plus for automated transactions against the manual system. In fact, there are problems that are addressed using automated Forex trading remarkably if the trader is losing a few times in a row that prevents him from making new trades. Such problem could be addressed using the automatic investing system.
With automated Forex trading, you will have a greater diversification. It means that you can trade in various markets in different time zones at a time. You can carry out trades with traders from Singapore or London even it is already 12 midnight in the United States. This benefit allows you a multiple exchange model option. You can use varying trading models to evaluate short-term data. This means that you will be able to predict the trend for a shorter period of time, let us say from fifteen minutes to half an hour.
As previously talked about, the Forex market is unique because of its ultimate liquidity. This liquidity is increased when the market goes automated.
Risk management troubles are solved through automated Forex trading. International checks, which are generally used in making purchases on Forex market, are synchronized through automated technology. Since the transaction in an automated process is now on real time, there is a slim chance that the payments will be delayed, reducing the risk of non-settlementby either parties. Although there are problems noted with the use of the automated system, it can be fixed through consistently-updated systems.
With automated Forex trading market, the prediction of $2-5 trillion average daily turnover within the nest 8 to 10 years can be changed within the next 4 to 5 years. Given the quick yet efficient trades on varying time zones, automated Forex trading will now be among the free lucrative business around the earth.
