Q1: When you consider that the foreign exchange market has become the world's largest financial market, with over $1.5 trillion USD traded daily, where does it go from here? A1:The FX market is unique, in the UK there is no central exchange, we trade via the inter bank market. With more and more private individuals taking up margin trading and new Forex brokers setting up, I can only see the market grow in the near future. Q2: Other than great liquidity, what are the principal benefits attached to the Forex market? A2: There is less to consider when trading the Forex markets, there are only a number of variables that affect the pricing. Main advantages include:· Forex Market allows 24 hour trading · Greater leverage, with most brokers offering 100:1, · Less starting capital required, · More Liquidity, day trading has to have enough volume to make it worth our while. The currency market is more liquid than all the world stock markets put together. Currencies are always in action, · Free trading systems · Better for shorting, There are artificial controls built into the market to prevent it from going down too fast. The reason is that we live in a biased world that likes to see things go up instead of down. One of these artificial contraptions is the "uptick rule," which comes into play when shorting stocks, making it more difficult to sell a stock short than to buy it. This is unheard of in the currency market. Selling currencies short while day trading is just as easy as buying them. · Ideal for Short Term Traders.Q3: Limited market access, liquidity issues-after market hours, commission fees, capital requirements and short selling/stop restrictions are just some of the issues investors face when considering other markets. Given that the Forex market removes many of these traditional barriers and therefore does not restrict the Forex traders’ ability to make a trade at the right time, is we likely to see an increase in trading volumes this year? A3: With all these advantages, traders are finding it hard not to trade currencies, online trading volumes across all products is increasing at a substantial rate, however FX trading, predominantly amongst retail investors is becoming very popular. Q4: There is stiff competition amongst online Forex service providers for retail Forex traders with some claiming to offer the same degree of technical analysis enjoyed by the world's largest banks and institutional traders. Is this possible? A4: Technical Analysis has come a long way, more and more Forex provides now have partnerships with firms who provide analysis. However the banks still have an advantage, the markets are still not under perfectly competitive economic model. The banks will always have access to information that is not readily available, ISX FX currently sources its information from a number of banks to fill this gap. Read More With SigmaForex
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