Disliked{quote} Even retailed forex is an insignificant part of total forex market. Probably around 6% to 8% of the total. It still has tremendous value to society. It provides both price discovery and liquidity to everyone. The more participants in a market, the less volatile and the more liquidity and the more accurate the price is. Without the retailed forex market, everyone will pay a cost 6.0% or more when they do the financial transactions. Imagine when you travel abroad, you convert your money to other currency. Let say you convert 10,000 USD to...Ignored
First of all on a good day the FX market may top 250 billion - only 3 percent maximum of the much touted 6 trillion. How can a 3 % liquidity be useful for anything ?
It's impact on real commerce is essentially ZERO.
Retail forex is a game onto itself that is totally disconnected from the total amount of all currency transactions on the entire planet.
Do you really think when toyota wants to build a plant in the US and needs to convert 500 million into yen you will actually see it on your MT4 terminal ?
Real commerce has no need for Retail Forex.
Trading in Retail forex is like betting on your favorite sports team at the local pub. It has NO EFFECT on the score and the outcome of the game and the "main game" does not need your bets to continue, only the book maker does...