Random quotes from the Internet:
"daily average turnover of approximately 1.7 trillion US$."
"Largest in the world (1995): $1.2 trillion daily."
"$1.9 trillion/day"
"The New York Stock Exchange, for example, has a daily trading volume of approximately $30 billion." (from Oanda.com)
I have often pondered on this:
Is it really fair to say that the FX market is by far and away the biggest market in the world?
My objection is this: you trade FX with leverage, but you don't trade stocks with leverage, so wouldn't it make more sense to look at the amount that traders place as collateral, as this is the money that the investor actually has paid into his own account. A stockinvestor only trades the money he actually have in his account..
But then maybe we should compare leveraged FX trading to leveraged CFD trading...But I don't think that the 30 billion on the NYSE are inclusive of leveraged CFD trading(??)
I must admit that my understanding of this may not be 100%, so actually I would like to ask the following question: If a trader opens a trade in EURUSD, trades 1.000.000 Euro and places 1% (10.000 Euro) as collateral, is it then true to say that HE has traded 1.000.000 Euro..? In reality, it is the bank that has lent him the USD, he has then converted them into Euro - would this be a correct description of what takes place..?
I don't know if this is a very stupid thread, I hope not, because I am a little confused about this...
Maybe the real comparison would be:
"Physical shares + leveraged CFD trading" vs "FX market"???
"daily average turnover of approximately 1.7 trillion US$."
"Largest in the world (1995): $1.2 trillion daily."
"$1.9 trillion/day"
"The New York Stock Exchange, for example, has a daily trading volume of approximately $30 billion." (from Oanda.com)
I have often pondered on this:
Is it really fair to say that the FX market is by far and away the biggest market in the world?
My objection is this: you trade FX with leverage, but you don't trade stocks with leverage, so wouldn't it make more sense to look at the amount that traders place as collateral, as this is the money that the investor actually has paid into his own account. A stockinvestor only trades the money he actually have in his account..
But then maybe we should compare leveraged FX trading to leveraged CFD trading...But I don't think that the 30 billion on the NYSE are inclusive of leveraged CFD trading(??)
I must admit that my understanding of this may not be 100%, so actually I would like to ask the following question: If a trader opens a trade in EURUSD, trades 1.000.000 Euro and places 1% (10.000 Euro) as collateral, is it then true to say that HE has traded 1.000.000 Euro..? In reality, it is the bank that has lent him the USD, he has then converted them into Euro - would this be a correct description of what takes place..?
I don't know if this is a very stupid thread, I hope not, because I am a little confused about this...
Maybe the real comparison would be:
"Physical shares + leveraged CFD trading" vs "FX market"???