By 2010, the share of retail participants was 10% of the total turnover of Forex. And it’s in the money. Quantitatively, the army of private traders is growing exponentially. From year to year. This is a trend that can not be placed within the scope of a scam or a worldwide conspiracy. The bulk of the funds are still provided by institutional participants. And 75-80% of operations are speculative. The negative background of the word “speculation” haunts us from the past. For the live market, the speculator is a boon. Like a wolf for a forest. Someone does not like wolves, some are afraid of them. But they need the forest the same way as the swamp – frogs. Due to speculation, the liquidity of markets is increasing. In general, volatility is leveled. In a word, we see a self-organizing mechanism of financial relations, occurring exclusively in the Internet space.
Also in recent years, we have seen a sharp increase in the number of financial services in general. Some functions of banks are replaced with electronic payment systems. And the number of them is growing. Some bankers openly acknowledge the replacement of the banking system with electronic systems in the future. Even loans can be obtained without the participation of banks. By the way, such systems already exist, although in an embryonic state.
On the other hand, the number of services for private traders is increasing, such as PAMM accounts and transaction copying services. Recently, trading systems have begun to spread, aimed at reducing the broker’s impact. All this brings trade and financial relations to a new level. That, in turn, is so broadening the horizons for customers that we are witnessing the emergence of social trading. As in its time the Internet itself was a field of communication of narrow specialists, and now most of the business does not do without the Internet. And this is a completely different qualitative approach in the financial sphere, which entitles the widest segments of the population to participate in the work of global financial markets, using group services in trade.
Skeptics will not fail to remind me that the majority of traders lose. Or even better: “Do not tell me your roulette!”. Imagine a busy intersection. You tie your eyes. Go away from the traffic lights for 15 steps. Then you make 8 turns and, with the words “I’m lucky”, cross the pedestrian crossing. All right – the rules of the road for cowards.
And one more thesis, which I particularly like is the “non-withdrawal” of the transaction to the broad market. In this case I will give you another example. You live in a village, and you have a bike, from which you have long grown. And then your neighbor suggested selling the bike to him. We do not think about why we are not allowed to sell our bike on the New York Mercantile Exchange. Now if you have 10 bikes, then yes. And one can be conceded to a neighbor.
We are not talking here about the operational risks of a broker or dealer. This is another story. This is the story of a store that sells skimmed milk. This is a story about a builder whose house collapses. Milk still remains milk, and construction – construction.
Thus, the institution of trading in the OTC Forex market is an electronic trading platform of a new type, on which the most advanced trading technologies are embodied. And, not least, the technology of financial infrastructure. And this opens up great opportunities for the private trader.
I must congratulate all of us. We are on the verge of a qualitative leap in the financial sphere. And one of the most important elements of this is the Forex market.
Tagged business, currency market, economy, forex, Forex for novices, guide, market, market makers, method of trading, money, Politics & economics, profit, stock exchange, Stock Trading, trade, trading