Did you know?
The Forex market is the BIGGEST market in the world. It’s bigger than the stock and commodities markets combined!
The average volume traded per day in the Forex market is a staggering $5.3 trillion (that’s $5.3 followed by 18 zero’s).
Compare this to the New York Stock Exchange (NYSE) which sees a ‘mere’ $22.5bn traded daily.
So, why is this important to know?
With such a large volume traded in the Forex market, a huge pool of liquidity naturally arises.
What is Liquidity?
Liquidity is the ease with which an asset can be converted into its cash value.
The term liquidity can apply to any asset you may own. How long will it take you to get the cash equivalent for your phone? Car? Tv? Currency Pair?
In Forex trading it is imperative that there is a huge pool of liquidity to be able to match the huge volume of trades made every single second.
Thankfully, due to the huge pool of liquidity that is in the Forex market you can open and close positions instantaneously!
Did you know?
Forex trading is what is known as a ‘zero-sum game‘. This means that whenever you buying (longing) a currency pair, someone else must be selling (shorting) a currency pair. Therefore whenever someone profits – someone else losses. Don’t worry, we’ll teach you how to be on the winning team more than the losing team!
- The Forex market is the BIGGEST market in the world. It’s bigger than the stock and commodities markets combined!
- The average volume traded per day in the Forex market is around $5.3 trillion.
- Liquidity is the ease with which an asset can be converted into its cash value.
- The Forex industry has great liquidity which enables traders to open and close positions instantaneously!