The Australian share market comprises approximately 2% of the value of global equities. Equity market transactions account for roughly one-third of daily capital flows in financial securities around the globe. The rest is made up of predominantly foreign exchange, bonds and other credit instruments, and commodities.
So, if you are only looking at Australian shares, you are only looking at a tiny snippet of what opportunities the world offers the astute trader to take advantage of.
We believe one of the best markets to trade is the foreign exchange market – or as it is more commonly called “FX”. FX is the ultimate of trading markets. It is the deepest, most liquid market on the planet, and is open practically 24 hours a day, 7 days a week. This market is typically good for those that have day jobs as they can use forex strategies to make decisions and execute trades after other markets have closed.
When we say “deep and liquid” we mean that at any one time, there are literally trillions of dollars of buyers and sellers of the “major” currency “pairs” looking to transact with each other.
When Swiss Air purchases a Boeing 747 Jumbo, they will need to pay Boeing USD for it. This will mean taking CHF out of their bank account in Switzerland, and converting it to USD to send to Boeing in America.
One major forex strategy is to keep an eye on global interest rates, should a rate rise, the currency should also move with it.
If you can imagine the scale of all international trade, you can easily understand why the FX market is so liquid and no matter what forex strategy you choose, be it technical or fundamental, trading opportunities are almost always available in the forex market.