What’s Different About The Currency Market

Posted on June 1st, 2010 by admin

Article from Forex Pip Bot Review

Daily transactions in the currency exchange market total almost $4 trillion each day. This is more than the total of all the world’s stock exchanges added together. What’s more, there are only a controlled number of possible currency pairs compared to probably hundreds of thousands of company stocks. With so much money concentrated in such a limited arena, price manipulation by the bigger players is a lot less of an issue, if it exists at all . Development

So if foreign exchange trading has so many advantages , why is it that it is not been preferred till recently? The answer is the market itself only began for real in the 1970s when exchange rates stopped being permanently pegged by the ‘gold standard’ and were permitted to change. There had been no history of personal investors getting on the telephone to a broker to trade in currency as there was in stocks. This suggests that it was not until the development of the internet the currency market opened up and foreign exchange vs stocks became a real choice for retail traders.

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