Nature of the Foreign Exchange Market

Dynamic and unstable, these two are the characteristics of the Forex market. It is a known fact that FX market always shifts it direction from one point to another. This is what makes it more attractive to the investors. But trading in the FX market requires a trader to also show the same nature. The most sought after speculative business is FX trading.

The nature of the Forex trade can be summed up into pointer as mentioned below:

Competitive:

It is highly competitive in the sense that it is a global activity. That is it is accessible to everyone irrespective of the time and territorial differences across the globe.

Time independent:

It is not dependent on time. That is a trader can trade whenever and from wherever possible. This is due to the fact that it is independent on the opening and closing time of any market. If the USA and European market is closing down, trader can shift his trading activity to Asian market.

Strategy Oriented:

It is a strategy oriented activity. Traders are always involved in formulating strategy and alternative strategies throughout the trading process. It is essential because of the fact that the important element of the trade is Currency and it always fluctuates from time to time.

Environment Dependent:

It is highly dependent on the major environmental factors like, POLITICAL, ECONOMIC, SOCIAL, and Technological prevalent throughout the globe. Any major change in all the above mentioned factors brings about a shift in price.

Liquidity and Leverage:

It provides traders highest proportion of leverage and liquidity, during the trade. It is a major back up, which keeps the traders well indulged into the trade, even if they face some failures.

Minimum Investment:

It is a Forex trader friendly activity as it require minimum of investment compare to other speculative option of trades. That is with a minimum of capital investment, traders enjoy satisfactory returns.

Reference Sites:

http://www.oneview.com/url/20449656/

http://www.oneview.com/url/20411966/

https://sites.google.com/site/cbflsandysite/

http://groups.myspace.com/index.cfm?fuseaction=groups.groupprofile&groupID=108215516

http://blip.tv/file/3920115

http://www.videojug.com/user/g94videos