The forex market is undoubtedly the world’s largest. The forex market provides several distinct advantages to the investor due to the size of the market, which boasts close to five trillion dollars traded daily. Forex never closes and the massive volumes guarantee that the forex trader always has an opportunity to enter the market and open a position.
On Monday morning markets open in Sydney and as the day progresses other financial markets through Asia join in, followed by the Middle East, Europe and lastly the Americas. The most active hours of trading take place during the European mornings when the U.S, Europe and the Middle East are all trading. The global forex market allows investors to trade at any time without missing a beat. The forex market will always allow you to trade in time of any momentous world event. This is without a doubt exceptional to the forex market.
The liquidity in the market provides the trader the assurance of knowing that the forex market will always be availabe, anytime, anywhere in the world – contrasting other markets that either close for trading or amplify up the spreads due to lack of liquidity during the day, merely since there are not an adequate amount of traders in the market.
With most online forex brokers, traders can view real-time, executable rates on streaming prices. The rates are generated by the given broker’s liquidity providers who are usually the world’s main international banks and cream of the crop in foreign exchange. The rates seen on the platforms are rates given by the brokers as market makers and mirror the global flow of forex supply and demand. Professional traders will use forex brokers comparison tools to make sure that they are trading with the best possible broker.
In other financial markets, big players can sometimes move a specific share or commodity with the aim of profiting, but due to vast volumes in the forex markets it is just about unfeasible for even the biggest groups to meddle with the universal market forces.