Unlike other financial markets like the New York Stock Exchange, the forex spot market has neither a physical location nor a central exchange. The forex market is considered an Over-the-Counter (OTC), or "Interbank", market due to the
fact that the entire market is run electronically, within a network of banks, continuously over a 24-hour period. This means that the spot forex market is spread all over the globe with no central location.
The foreign exchange market, which is usually known as "forex" or "FX," is the largest financial market in the world with its $4 TRILLION a day trade volume. In the forex market, $4 trillion is traded daily, making it the largest and most liquid market in the world. This market can absorb trading volume and transaction sizes that dwarf the capacity of any other market.
The futures market trades a puny $30 billion per day. Thirty billion? Peanuts! The forex OTC market is by far the biggest and most popular financial market in the world, traded globally by a large number of individuals and organizations. In the OTC market, participants determine who they want to trade with depending on trading conditions, attractiveness of prices, and reputation of the trading counterpart.
There are many benefits and advantages of trading forex. Here are just a few reasons why so many people are choosing this market:
No clearing fees, no exchange fees, no government fees, no brokerage fees. Most retail brokers are compensated for their services through something called the "bid-ask spread".
Spot currency trading eliminates the middlemen and allows you to trade directly with the market responsible for the pricing on a particular currency pair.
No fixed lot size
In the futures markets, lot or contract sizes are determined by the exchanges. A standard-size contract for silver futures is 5,000 ounces. In spot forex, you determine your own lot, or
position size. This allows traders to participate with accounts as small as $25
Low transaction costs
The retail transaction cost (the bid/ask spread) is typically less than 0.1% under normal market conditions. At larger dealers, the spread could be as low as 0.07%.
A 24-hour market
There is no waiting for the opening bell. From the Monday morning opening in Australia to the afternoon close in New York, the forex market never sleeps. This is awesome for those
who want to trade on a part-time basis, because you can choose when you want to trade: morning, noon, night, during breakfast, or in your sleep.
No one can corner the market
The foreign exchange market is so huge and has so many participants that no single entity (not even a central bank or the mighty Chuck Norris himself) can control the market price for
an extended period of time.
In forex trading, a small deposit can control a much larger total contract value. Leverage gives the trader the ability to make nice profits, and at the same time keep risk capital to a
minimum. For example, a forex broker may offer 50-to-1 leverage, which means that a $50 dollar margin deposit would enable a trader to buy or sell $2,500 worth of currencies. Similarly, with $500 dollars, one could trade with $25,000 dollars and so on.
Because the forex market is so enormous, it is also extremely liquid. This means that under normal market conditions, with a click of a mouse you can instantaneously buy and sell at will
as there will usually be someone in the market willing to take the other side of your trade. You are never "stuck" in a trade. You can even set your online trading platform to automatically close your position once your desired profit level (a limit order) has been reached, and/or close a trade if a trade is going against you (a stop loss order).
Low Barriers to Entry
You would think that getting started as a currency trader would cost a ton of money. The fact is, when compared to trading stocks, options or futures, it doesn't. Online forex brokers offer
"mini" and "micro" trading accounts, some with a minimum account deposit of $25. does make forex trading much more accessible to the average individual who doesn't have a lot of start-up trading capital.
Free Stuff Everywhere!
Most online forex brokers offer "demo" accounts to practice trading and build your skills, along with real-time forex news and charting services.
In the past, only the big corporation and highly capitalized investment funds could trade currencies. Once the 1990s came along, thanks to computer nerds and the booming growth of the internet, banks began creating their own trading platforms. These platforms were designed to stream live quotes to their clients so that they could instantly execute trades themselves. Foreign exchange, as the prime market, generates billions in revenue for the world's banks and is a necessity of the global markets.
Meanwhile, some smart business-minded marketing machines introduced internet-based trading platforms for individual traders. Known as "retail forex brokers", these entities made it easy for individuals to trade by allowing smaller trade sizes. Unlike in the interbank market where the standard trade size is one million units, retail brokers allowed individuals to trade as little as 1000 units! but thanks to retail forex brokers and the Internet, this isn't the case anymore. With hardly any barriers to entry, anybody could just contact a broker, open up an account, deposit some money, and trade forex from the comfort of their own home.
Attend FXTM Seminar to understanding of the fundamentals of FOREX and other financial instruments. Join FXTM’s latest seminars in Port Harcourt and Abuja, and Lagos to find out how! Your will receive trading insights straight from an FX master! During these events, FXTM’s forex YOU will be giving a detailed introduction to FOREX and how to trade financial instruments including shares, indexes and currencies. Attendees will discover how FXTM Invest – our innovative copy-trading programme – may improve YOUR overall trading experience.
Our free seminars are designed to help FX newbies get up to speed on trading basics. You will learn all about trading with FXTM and how our innovative investment programme can help you maximise your potential profits. You’ll also enjoy the opportunity to network with other traders and ask true FX experts your questions.
At the four-day interactive workshops, you’ll be able to take a closer look at what could possibly make a successful trader through practical sessions that help cement your new knowledge. The workshops cover a huge range of in-depth topics, including unmissable insights into risk-management principles, technical analysis tools, the benefits of different trading platforms – and much, much more!
Why should you attend?
Learn how to get started as a forex trader
Meet and network with fellow local traders
Ask FX experts your trading questions
Explore FXTM’s products and services
Discover how FXTM Invest could work for you – follow a suitable manager and profit when they do!
Discover the opportunities of the global market
Understand important trading terminology
Explore the features and benefits of various trading platforms – with practical examples
Learn how to place trades using Instant Execution and Pending Orders
Examine Stop Loss and Take Profit Strategies
Explore technical analysis tools
Analyse Japanese Candlestick charts
Discover how to read Resistance and Support levels
Apply Moving Average strategies
Learn about risk management
Examine trading psychology
Explore FXTM Invest and discover how to choose a suitable Strategy Manager
Delve deeper into the risk/reward balance of risk management
Discover lot sizing and percentage risk per trade
Learn more about trading psychology and FXTM Invest.
It's FREE to Register...Click here Register today to book your place!