Isn’t it amazing what the internet can do? It has come to be a universal resource, accessible mere clicks away. For those over 40, you probably recall the days when businesses were run over telephone lines, and locale wasn’t of much consequence. But technology has evolved, giving birth to innovations like the Centralized Matching Engine (CME) and Global Limit Order Book (GLOB) for trading. Today, location matters. Foreign exchange is a flourishing global market with an astonishing daily trading volume of over $5.3 trillion, surpassing both the equities and futures markets.
The Global Trading Platform
Trading platforms like XTrade have made it possible to participate in foreign exchange from around 140 countries worldwide. This means you have the freedom to set up an account and launch your trading career from just about anywhere on the globe. Moreover, platforms like these grant you access to trade over 51 currency pairs.
By using such platforms, you’ll actively be engaging in the laws of supply and demand which dictate global exchange rates. Strong economies breed potent currencies. And when you trade Forex, you’re essentially trading economies. The demand for a currency hinges on the current and projected health of its corresponding economy. Traders can gauge this demand through fundamental and technical analysis.
Your Profit Prospects
Income potential is doubtlessly a top priority for every investor, and the currency market offers that aplenty. Whether currencies are ascending or plummeting, you can capitalize. If you deem a currency pair is increasing, buy it. If you assume it’s decreasing, sell it. It’s as straightforward as that. However, learning when to buy and sell requires investment—in both time and money. Use charts and data analyses, use tools like the Xtrade App, and keep abreast of financial news. Also, getting some skin in the game will help to grow your trading experience, which could pave the way to more lucrative dealings in the future.
No Commission
Worried that currency trading might drain your profits with lofty fees and commissions? Fear no more! Forex trading is commission-free. You only have to cover the spread, the difference between the bid and the ask prices, which is also a cost in the stock market in addition to commissions.
Bank on It
Banks make up the majority of traders, responsible for 24% of the daily turnover. This is a significant income stream for banks who have seen their profits slump after the sub-prime mortgage crisis. These financial institutions are continually seeking profitable investment opportunities. Forex trading is an ideal channel for financial professionals with the quantitative skills to delve into complex sectors. If this investment strategy is good enough for the banks, then it’s absolutely worth considering for your own portfolio!
