Most of us have already felt what an economic crisis is. Most likely, we keep on looking for extra income and financial stability. Is it possible? Yes, indeed, if discover Forex. What is conventional Forex?
Back in 1989, the daily FX turnover used to be as little as 600 million dollars a day. In 1998, another global crisis broke in. Back then, the turnover easily exceeded 1 trillion dollars a day. By 2010, the turnover had already reached 3,5 trillion dollars. This time, it was the 2008 crisis that contributed to this growth. These days, the daily FX turnover is well above 5 trillion dollars a day. For the sake of comparison, the monthly NYSE turnover is well below the daily FX turnover. It sounds a little bit shocking, doesn’t it?
Despite this amazing statistics, the attitude to Forex is still ambiguous at best. On the one hand, you can access it from any place around the world where you can find Internet access. On the other hand, the old-school guys still cannot put up with the fact that financial markets are rapidly going online, and there is no stopping it. Forex is the world’s leading financial market. No other market can beat it in terms of turnover, liquidity and other significant factors.
For those of you who don’t know, Forex came into existence after the world abandoned the so-called gold standard, thereby creating the so-called fiat money, i.e. money backed but nothing else but the government’s promises. This is when exchange rates came into existence. Back in the days of the gold standard, they knew how much gold they could get for a certain currency. When the gold standard ceased to exist, they started measuring currencies one against another, thereby creating relative exchange rates that change continuously.
Even though those exchange rate fluctuations are minor and insignificant most of the time, major news can make a certain currency crash or sky-rocket in a matter of hours, if not minutes. Due to leverage, Forex traders can operate relatively small amount of money to trade big and make money on even small changes in the exchange rate of the chosen currency pair. This is what FX trading is all about.
Strange as it may seem, for savvy FX traders and investors, times of instability and crisis are the very times they can win really big. There are hundreds of cases, when traders managed to increase their capital by 10-fold and even 100-fold.
Who do Forex traders make money?
You can find tons of delusions and fake rumors about Forex on the Internet these days. For example, some of the say that exchange rates move chaotically and therefore are impossible to predict. Others say that it’s impossible to make money trading Forex, or it’s possible only if you have millions of dollars to start with. None of that is true. Any professional FX trader can prove that.
In any financial market, whether this is a stock or commodity exchange, or Forex, there are certain rules and tendencies the markets have to follow. Often times, savvy trader make their trading decisions based on the results of in-depth technical and fundamental analysis. You can find out more by going to Masterforex-V Academy’s official website.
