The flexibility in taking decisions, developing trading strategies, investing and profiting is priceless on the forex market.
While the worldwide stock markets can only be measured in billions, the forex market is 60 times bigger, boasting with a hugetrading volume of $4 trillion a day.
Though national economies affect the forex market, in this respect it has another advantage over stock markets: as opposed to buying stocks, a forex investor can gain profit irrespective of currency fluctuations. Buying or selling currencies at the prevailing exchange rates is possible without restrictions to place or time – and with a single mouse click.
Forex Market size and liquidity
What makes the foreign exchange market very special is, among others, the fact that as opposed to other financial markets (for instance, the New York Stock Exchange) it is decentralized, that is, it has no physical location. Forex is run online 24 hours a day nonstop and within a network of banks. This is why we call it an OTC (over the counter), or interbank market. As a result, transactions can be done with a single click from any spot of the world and at any time.
Its over 4 trillion daily turnover on average makes forex the largest and most active of all other financial markets on the globe, with a trading volume and size that keeps growing at an incredible speed. Thanks to its trading volume, the forex market has the highest liquidity: financial instruments are traded with great frequency and in big amounts from small individual investors to large corporate entities. Because it offers more opportunities to buy and sell financial instruments such as currencies and because it also reduces risk, high liquidity is a definite advantage in forex trading.
High liquidity is a definite plus, as well. With liquid securities like currencies, traders have instant access to money as they can sell their investment quickly and at the market prices most convenient for them. In addition to this, the possibility to trade round the clock is a great appeal: unlike in the stock market, which is only open during business hours, forex can be traded practically without a stop during the US, Asian and European market hours.
Forex traders have full control over their investment decisions and results. Since the forex market has no centralized exchange location, online access to the market is instant, trades are executed directly and at the current market price, without involving middle men. Last but not least, manipulative influence is absent: in forex there is no price monopoly, and as a result no price manipulation, either.