A warning to would be Forex traders

[bgp]

I'M BIGGER THAN FXXXX

 

[achilles28]

At one point, fxstreet reprinted excerpts of the Bank of International Settlements Triannual Survey on the Forex Markets

In it, total speculative activity as a pecent of daily turnover was estimated at 95 percnt

 

[ElectricSavant]

I am curious...are retail traders exposed to this liquidity with their dealers/marketmakers?..el Cid?

FragmentedSavant

Let's say the published "advertised" reports are correct and the market trades appx $1.5 trillion a day.

 

[Wallace]

Surfer: " what do you think TA is based on ? " — science


Bank of International Settlements 2004 Triennial Survey
http://www.bis.org/triennial.htm

 

[Chood]

Quote from ElectricSavant:

I am curious...are retail traders exposed to this liquidity with their dealers/marketmakers?..el Cid?

FragmentedSavant

Let's say the published "advertised" reports are correct and the market trades appx $1.5 trillion a day.

My guess, which is not uninformed, is that a single act of wiring money home by a guest worker (Germany to Turkey, for instance) is more involved in the foreign exchange market, and has more influence on it, than all the trades of any 100 customers of a fx retailer.

 

[Chood]

Quote from Chood:

My guess, which is not uninformed, is that a single act of wiring money home by a guest worker (Germany to Turkey, for instance) is more involved in the foreign exchange market, and has more influence on it, than all the trades of any 100 customers of a fx retailer.

The above explains the famous advertising campaign of a well-known moneygram biz.: “Play with the Big Boys in Forex, Wire Your Dough Here.”

 

[romik]

Quote from Joab:

90% of currency trades are not speculation but rather just, day to day business, as clients from Industry go about their normal business and worldwide commerce transactions.

In which case it would be normal for a chart to look like this (on all time frames) and if they did, then I couldn't argue with you, but they don't.

 

[notouch]

Looks like EUR/GBP to me...

 

[romik]

Quote from notouch:

Looks like EUR/GBP to me...

Unfortunately a sideways market can be present in FX, same as in commodities, equities, etc. But if you look at the monthly chart, recent sideways observed on daily is simply a pause, is it not?

 

[notouch]

Quote from romik:

Unfortunately a sideways market can be present in FX, same as in commodities, equities, etc. But if you look at the monthly chart, recent sideways observed on daily is simply a pause, is it not?

"Convergence" is a prerequisite to the UK adopting the Euro which is the government's aim so we can expect the range to narrow until we say goodbye to GBP.