Review of Forex Killer: It’s all about Systems!
Our Review of Forex Killer of last week was centered around the basic principles of this industry. This week see the extension of this discussion to more advanced concepts such as systems as well as the completion of our current review of forex killer.
In the world of Forex market, like in most things really, there are only two different types. The Flexible and the Fixed . A Flexible Forex Market applies when it is the Central Bank who decides how much each currency is worth. This valuation is based on supply and demand and doesn’t require the central bank to buy or sell currencies in order to maintain a stable market price.
When the Central Bank has to compensate for currency market fluctuations changes by buying or selling currencies, we have a Fixed Forex Market System. In this case, the Bank acts as a buffer between currencies.
In order words for each price increase of one currency, the Central Bank must sell in order to compensate for the increase. Likewise, when a currency market price decreases, then the Bank must now buy more of that currency so that the market valuation for that currency is re-established.
Just like a Pendulum swings in an ever lasting attempt to reach a status where the swinging movement stops, so that the Bank act to stop currency fluctuations until the balance is re-established.
It’s all about pennies!
Well there is lots of it involved in the Forex Market since it is the biggest financial market worldwide. If you have ever heard the expression: “He/She is rolling in it” now you know it was made as a reference to Forex traders.
It is a market so large that you would need 12 zeros after the digit 2 to get an idea of how large it is and that’s just the figure for a single daily turnover.
This means that 2,000.000.000.000 USD are traded daily. Two trillion USD or two thousand million American Dollars! Talk about the potential of a Forex Killer Trader.
The Forex market is an over the counter market with no physical location, central exchange and or clearing houses. Indeed, all it is, is an electronic network of banks, corporations and individuals purchasing, “trading”, currencies from one another. Open 24 hours a day, it is uniquely suited to both end of the business spectrum, namely corporate institutions and independent or at home traders.
FX Traders (Forex traders) buy and sell to and from each other and this process is then fed into these networked computers to then be displaced on official quote screens.
