What Happens in 60 seconds in Forex – PacForex
Posted By: Waqas Javed
The condition of many financial markets has been becoming volatile in the latest past, Forex trading is emerging as one of the most popular modes of trading among the investors these days. Forex, currently stands as the largest financial market in the world, with the activity of over USD 5.3 trillion a day. This market not only promises a profit to established traders, but also to the beginners, who want to invest in Forex and start with a small account. A lot can happen in 60 seconds in the Forex world. This is some insight for investors who are not very familiar with how can Forex market be a game changer.
Forex is a market that never sleeps and is active 24 hours of all 5 working days, Monday through Friday. In a market as active as this, 60 seconds is a lot of time. From one end to the other end of the globe, a huge amount is shared in this time and a lot of transactions are done. Let’s look at the facts in the following infographic:
Infographic by: Pacforex Forex Trading Platform
Forex is a market that trades about USD 5.3 trillion every day. With this sum of money being traded on a daily routine, it stands as the largest financial market in the world. Â In Forex trading, an investor buys a currency and aims selling it at a higher price and vice versa.
With the forex market expanding and its scope for producing profit multiplying every day, there are many new traders making their entry into the trading market these days. The biggest misconception that a novice trader enters the market with, is that trading is a piece of cake, while on the contrary forex trading is not at all easy as it apparently seems. There are many ways of trading and making profit at it that come only with experience. But, before gaining experience and trying their luck in the business, it is necessary a trader clears his head of all the misconceptions about the currency market that his mind holds in it.
Below is an infographic that is going to illustrate to the trader the common misconceptions that he comes to the market with. This picture will make it easy for an investor to know what thoughts he needs to avoid, in order to remain successful at the art of Forex Trading.
Infograhic by: Pacforex Forex Trading Platform
The term Forex stands for Foreign Exchange or the Exchange of Foreign Currencies. The forex market is the largest financial market in the world. In past years, forex trading was considered the domain of financial giants, banks and institutions. However, looking at the opportunities of profit it provides to investors, many novice traders are now trying their hands with it. With the avenues of trading now opening to a whole lot of common people, the question of which course of trading to take is widely asked. A trader wishes to find the pros and cons of all other kinds of trading to finally choose the best option.
It’s a known fact, when words fail to explain a thing, a picture often does. We are going to define to you the difference between forex business and stocks to give a clear idea of what best suits your style of trading and how forex is better than any other market.
Infographic by: Pacforex Forex Trading Platform
The forex market works 24 hours of 5 days, while the stock market starts at 9 in the morning to 4 in the afternoon every day from Monday to Friday.
Forex trading provides a leverage of 300:1, when stock market on the other hand has the leverage of 2:1.
Since the forex market deals with foreign currency, it does not require much hassle to purchase it. It can be bought over the counter while for stocks, one has to be a member of the exchange.
The stock market has fees for almost everything, ranging from spread to commission to other additional fees. But forex has a fee for only the spreads.
The volume of forex is USD 5.3 trillion a day, whereas stocks have a volume of USD 100 billion. This shows that the forex market has most liquidity.
Forex primarily deals with 8 major currencies and some other exotic pairs too, whereas there are about 5,000 public trading companies in U.S alone. This makes trading decision easier for the forex investor.
The orders in forex get delivered immediately, but in stocks they often take time. This is a reason forex trading is recommended over stocks.
There is greater security of capital with Forex, because the trade is done mainly in 8 currencies and the chances of these currencies falling in price is lower than that with stocks. The shares in stock market can come down any time as the companies involved are many in number and can end without any notification.
A forex account can be opened with just $200, but for stocks the share price determines the capital needed for the business to begin.
Itâ€™s no big deal to keep 4 major currency pairs properly observed, while for stocks, the list of shares to keep under observation are several. This makes stock business more complex than the forex.
A trader can directly make a purchase of currencies, without the need for a broker or a middleman like in stocks.
The trading of forex can be done remotely from any place, when stocks on the other hand are highly centralized to exchanges and markets.