High liquidity and High volume

Posted on June 18, 2008 by Yohay
Filed Under Forex Basics | 1 Comment

The daily volume in the Forex market is estimated at 3 trillion dollars! This inconceivable figure is slowly on the rise.

This astonishing number (3,000 billion) is divided between deals intended for payments related to import and export, and investment deals.

These investment deals (or speculation) are 95% of the flow in the market. This means that traders like yourself make the majority of the Forex market’s high volume – it’s not controlled by big companies or central banks.

Remember that when you start a trading session, or open a position, you must also close it. So, this means that an average $100,000 position instantly means that it will be closed with a deal with the same magnitude.

And as usual, the agency enjoys the few pips of every spread in every deal.

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One Response to “High liquidity and High volume”

  1. Central Banks Intervention - Great Trade Opportunity | Forex Crunch on June 25th, 2009 12:33 pm

    [...] one of the basic characteristics of the forex market. Influence and foul play – not in forex. The high volume in forex makes it [...]

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