Article

Forex Trade – Focused On Perfect Competition

Topic: Financial FreedomPublished July 27, 2009

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I think that the Forex trade is one market that has been fixated on one idea since it was incepted, and it was something that was done quite without thought when the makers of the currency market started this trading platform about thirty years ago. One of the things that I like about this market is that it seems bent to create a platform that has perfect competition, and this is down to several factors. If you are interested in the Forex market, you might want to be aware of this as an element of the market that can be very beneficial to you. One of the things to notice is that it is a zero sum game, which means that wins and losses are across the board on any market trading day. There is no half and half results, it is either you get it or you do not, and when you do, there is someone else on the other side of the market that has lost. It is all about price movements. Good and bad decisions are being made on a daily basis and it is up to you to take advantage of them. Another thing to think of is the over the counter nature of the Forex market and how that can help you make decisions on whether or not it is truly a free market system that you can utilise for your own trading needs. Why would you settle for less transparent markets that have the potential to hijack your efforts at any one point. I do not like not knowing about variables. I do not mind variables surprising me, I mean, that is part and parcel of any market, but I do not like it when I am surprised by market variables that I did not know was there in the first place. Another thing to consider is the whole idea that the market has no physical trading floor, and it moves from one country to another This means, regional laws and unreasonable taxes (based per country or region). You just have one entity, and one market to deal with and that is all you need to know about it. This is why I say that it is focused on perfect competition. Dealing it out is quite good in every sense of the word, so you should consider the Forex trade as a good place to start your trading career. Last but not least, you are then in the position of a market that exists in a free financial zone, which means it is a market based on its own determinants and no other controlling factors. Some might say that the existence of central banks and governments within the Forex market would make it not so perfect, but nothing is air tight. This is as close as you can possibly get to that reality and when looking at the imperfections of the other markets around me, I would rather have Forex as a start and as a finish.

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