Day Trading Tips

forex weekend gap

forex weekend gap

Several factors contribute to the uniqueness of the Forex market. They are:

* Extreme market liquidity
* Geographic dispersion
* The large number of operators (and variety) on the market
* The duration of trading hours (24 hours per day, except weekends)
* The lower profit margins compared to other fixed income markets (sometimes the benefits may be higher depending trade volume)
Quantities trade volume *
* The variety of factors that directly affect the exchange rate

Market currency is considered the epitome of perfect competition or perfect. Based on statistics compiled by the Bank for International Settlements (BIS) the average daily trading volume for this time of year is 3.21 billion dollars in volume. This volume is divided into four categories, namely:

1. 1.714 trillion U.S. dollars in the operations of currency swaps – derivatives OTC, with interest short-term rates
2. 1.005 trillion U.S. dollars in cash transactions – using the money to buy another for purposes of immediate rather than delivery future
3. 362 billion dollars ahead at all – the agreements concluded between the two parties to buy or sell assets at a price previously agreed
4. 129 billion U.S. dollars estimated in the lack of information

The concept of futures trading Forex was established in 1972 at the Chicago Mercantile Exchange, and has gradually developed a viable segment of the forex trading is today. The Wall Street Journal, futures are now about 7% of total volume traded on the Forex.

In the past, the greatest growth in the volume of Foreign Exchange Trading occurred between April 2005 and April 2006, when the market witnessed a 38% increase in trade volume, which equates to a doubling since 2001. We know well that There were two important factors contributing to this growth. One of them was the foreign exchange market has grown in importance as a class assets, and the other was the increase in fund management assets, namely hedge funds and pension funds.

In addition, the emergence of currency exchange on the Internet has also gained popularity in the Internet platforms provided traders retailers to become more involved in the trade "industry factors and the increased traffic of money. And it was that one of the sites under the trade who were born as, although it is probably the most important.

The Wall Street Journal Europe, 73% by volume of total trade is a direct result of the 10 most active traders in the currency market. The table below is a list of the 10 traders, their country of origin designation and the percentage of volume:
Row
Name
Bulk
1
Deutsche Bank
19.30%
2
UBS AG
14.85%
3
Citi
9.00%
4
Royal Bank of Scotland
8.90%
5
Barclays Capital
8.80%
6
Bank of America
5.29%
7
HSBC
4.36%
8
Goldman Sachs
4.14%
9
JPMorgan
3.33%
10
Morgan Stanley
2.86%
Interestingly, eight of the 10 hail from a total of U.S. or UK. Naturally, the Swiss bank is also one of 10.