The most popular choices among traders in Forex Market

The most popular choices among traders in Forex Market

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The foreign exchange market, or foreign exchange market, has thrived in the last decade to a large extent - therefore, today it already accumulates the assets of private investors and institutional investors that significantly exceed $ 6 trillion. Such a turn puts the global Forex market at the forefront of the largest financial sectors in the world, so you should not be surprised by all the brokers, banks and traders who also want to earn coins and exchange. The Forex market basically comes down to the best way to sell or buy and sell a specific currency.
Of course, every Forex trader has his own strategies and patterns, as well as favorite currency pairs he plays. Forex game always takes place in the context of two currencies and changes in the rankings of a particular pair - whenever there may be a different pair, of course. However, an investor already familiar with the nuances of valuation, for example, the pound sterling or the Chinese yen, will most likely stay in this pair for as long as possible because the technical knowledge and knowledge gained while playing in currencies in practice have the greatest impact on the final results achieved here by the player.
So it is quite understandable when the Forex player from  Switzerland, they decide to invest their foreign capital in  Switzerland  Franc and, for example, it folds the currency, e.g. with the European euro. In this way, it remains closely linked to both currencies and should not even try too hard to gain continued access to reliable economic information from the macro-region of the European Union and Poland itself. For example, access to the specialized press and television economic programs is facilitated, making it easier to acquire basic knowledge of current currency trends, stock market indices, and market analyst forecasts.
By analyzing the composition of foreign exchange operations in the foreign exchange market with respect to the content of specific currencies in the volume of transactions, you can immediately capture the four iron currency, which is a group of strongest and most stable global currencies, in which investors institutional and private place money.
These four are of course:
The US dollar, in which about 85% of forex investors decide to invest their capital
The European euro, whose strength is largely evidenced by the strong economy of some European Union member states, and which in its foreign exchange transactions shows up to 40% of brokers, traders and bankers
Being Chinese, desperately chosen by all Asians, and especially Chinese investors and agents is an element of nearly 20% foreign exchange in the Forex market
the British pound occupies about 10% of the daily currency traded in the global Forex market.
Why choose popular currencies?
First of all, their rates are somewhat controlled by a number of organizations and the government itself and its central bank, which are always forced to protect their currency. The most important thing, however, is that with the colossal number of investors deciding to sell and buy, for example, the euro, it is difficult to imagine any speculator move that could distort the real currency's rankings in a pathological way.
Impact on Forex trading
of course, playing currency is speculative, but forming a speculative pool of players is extremely difficult due to the large purchasing power of other "non-initiated" players. So if even a strong central bank takes the money press, it may ultimately not have the effect of keeping the currency exchange rate in the prospect of more than a few hours if the whole Forex market reaction is directed against such an action. This is why every beginner Forex trader must first be aware of a large number of force vectors and spheres of influence in a given currency before attempting to analyze specific charts.
There are many external factors (related to the economy of the currency issuer) and internal factors to consider before making a decision to sell and buy a currency, and only the most obvious ones, such as:
  • Micro and macroeconomic indicators derived from a given economy (unemployment, public sector debt, domestic consumption).
  • Demographic and economic and social indicators from a particular region or country (birth rate, average age, and availability of working-age specialized workers, readiness for mobile and distance work, professional development).
  • Currency issuer central bank decisions (suppressing money, lowering or raising the interbank rate, issuing treasury bills).
  • Level of economic investment in infrastructure, construction, technological innovations and the like.
  • Hiring employees in the modern technology sector and transferring knowledge from science to enterprise and business centers.
  • The purchasing power of forex investors from a particular country or macroregion, and the active policies of local organizations, brokers, banks.
  • History of the exchange rate appreciation in relation to the current trend and periodic comparison with last year's quotations.

Where and how to buy currency
Fortunately, most of the above indicators and data are not hidden from the public and any investor or trader can use them successfully through the Internet. The most convenient form in which the Forex player can compare the statistics and behavior of a given currency in the market at any time point of view, and often also in a direct comparison to any other currency shown, is today the Forex broker platform - to put available in the form of a web site or a special mobile app for even faster and more convenient shopping.
In the ECN (electronic communications network) model the foreign exchange market creates a giant network of computers and other network equipment that exchange information about current orders for the purchase and sale of a particular currency. In this network you no longer need a broker to access individual offers - anyone can set up and deposit forex accounts themselves, then successfully place orders to buy or sell the currency themselves. The real-time Forex trading platform illustrates what individual currency quotes look like, precisely calculating capital movements and trader interest in particular options.
This market is so liquid that practically anyway for any amount of currency at any time of the day or night can be carried out after a favorable indicator of the entities currently playing. All those interested in buying a specific currency at a given time issue their bids, and a person with a particular currency can thus choose the optimal option for themselves, which forces bidders to compete. Central and commercial banks are particularly active in this market, so for a private player, it means using interested buyers competing for their assets.
Such a construction of the currency market in global terms means that the best results in the Forex market are investors who sell and buy regularly and frequently. The logic of long-term saving of even a large amount of a given currency in your account is not justified at all in terms of global currency exchange. After a period of one year from purchasing a particular currency, its rankings can quickly return to the starting position, limiting any profit prospects.
On the other hand, regular and frequent currency exchange, even within a pair, allows you to record on a regular basis (even tens of times a day) minimal profits, whose balance at the end of the day or week will be positive about short cuts in quotation marks. This possibility of adjusting the rate of investment and the volume of its contribution to the expected profit and predictions of its investors and the free time to make decisions on the trading platform- these are the biggest attributes of the entire Forex system. Each and every participant in the game can bring not only their savings but also their ingenuity, game strategy or character, and the Forex market bounces off the fact that it quickly becomes transparent to the player and allows you to relax in some way by selecting the buy and sell options on your app mobile or broker website.

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