Everything You Need To Know About Forex Trading
Forex exchange market is the largest and most liquid financial market in the world. The market runs around the clock where the currencies of different countries are bought and sold via brokers. Currency exchange rate of any country rises and falls due to many factors which include economic & political conditions, central bank’s policy and natural disasters.
Most of the trading happens online rather than on exchange floors that’s why the forex market is accessible to anyone in the world. This results in the growing number of private investors and traders in forex trading which has also triggered many myths and wrong concepts about Forex. Here are some facts about online forex trading that may prevent you from getting distracted by all those myths you have come across.
Every broker is not the same: Broker plays a key role in forex trading who can either drive you towards profitability or losses. So, it is very important to choose broker cautiously. Although, most of the brokers use similar trading platforms and provide the same types of services, the result cannot be the same, because the performance will depend on how they operate, treat the customers and what are their charges?
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Simple strategies are great strategies: Many beginners think that big forex players apply great and extraordinary strategies to make money. However, complex strategies are considered bad as they may make your trading process complicated. So, it is not easy to remain sticked to it. However, simple trading strategy is easy not only to understand but also for sticking to it.
Overtrading is a blunder: While monitoring today’s exchange rates a number of new traders get inspired to do overtrading. Many of them feel that if they spend a single minute away from their computers, they would lose several trading opportunities. So, they tend to enter to several positions in order to earn more profit. They think that by entering several positions they can increase their chances of profitability. But in reality it is not possible that every trading can give you profit. On the other hand, you may get inspired to do more trading without thinking much in case of recurring losses.
Banks have great impact on the forex market: Experts say that 70% of all regular forex trading is done by banks. Banks hold cash for their clients and buy currency on their behalf.
According to the Euromoney FX Survey 2016, here are the top 10 Rankings in overall forex market share.
Bank — Market share
Citi — 12.91%
JP Morgan — 8.77%
UBS — 8.76%
Deutsche Bank — 7.86%
Bank of America Merrill Lynch — 6.40%
Barciays — 5.67%
Goldman Sachs — 4.65%
HSBC — 4.56%
XTX Markets — 3.87%
Morgan Stanley — 3.19%
