Forex: Big Risks, Big Money

Forex: Big Risks, Big Money

In the last three decades or so of financial markets, the forex market remains the biggest and most lucrative of all. Daily, there are an estimated US$2 Trillion transactions done. It is also popularly called as the round-the-clock interbank market, or bank-to-bank money market. Forex interbanking goes on around the major banking and financial centers of the world.

Forex used to be exclusively for big-time players only. Only giant traders like banks, huge funds, some high net-worth speculators, and major dealers of currencies were able to trade because of the exorbitant minimum and very strict financial prerequisites of forex trading. These giants enjoyed the edge in forex, especially the bonuses offered in big markets like incredible liquidity and conspicuous trending of prime currency forex rates in the world. But today, with some rigid prerequisites relaxed, more players from various sectors jump in the band wagon and thus the trillions of trading worldwide.

Of all the world's markets, forex easily translates into fast cash. In down or up trends there will always be buyers. The leverage could be up to 400:1. The key to leveraging is the practical use of risk management, especially in big-time leveraging where there could be substantial gains or losses. Furthermore, there's no rigidity on shorting so one can continue unlimited forex dealings anytime.

Smaller forex trading is now possible through the so-called Worldwide or Global Forex Trading (GFT). GFT "creates" markets that cater to specific traders with various trading capabilities. It creates big markets for big traders, medium for medium traders, and small for small ones, offering basically the same opportunities to all and sundry. Forex trading is not done in a rigid, regulated exchange, and thus the bigger related risks in forex trading---the more traders now the more the influences in the market and the more the risks. The forex market rids markets of the usual trading barriers to give leeway to forex traders to engage in trade risks at the right time.

Forex trading has evened up or democratized currency trading and its lucrative rewards. It still involves big money investment even in the medium and small markets, but "big" in the context of forex traders in such categories. Trading or "betting" cannot be a $1 deal as in casino gambling; we're talking of capital money here, a real investment that may create a fortune if the right deals and timing are made. It is real investment made accessible to all.