In this live trade video, I demonstrate how simple and lucrative swing trading can be. When trading is made for the purpose of making fx payments , it’s still a zero sum game because eventually any trader will have to pay spreads on the Buy / Sell of a currency, but since there’s not one trading against you, there’s nothing negative about it.
Now that we know how currencies are quoted in the marketplace, let’s look at how we can calculate their spread Forex quotes are always provided with bid and ask prices, similar to what you see in the equity markets The bid represents the price at which the forex market maker is willing to buy the base currency (USD in our example) in exchange for the counter currency (CAD).
It is important to note that the stock market overall is often considered a zero-sum game, which is a misconception, along with other popular misunderstandings Historically and in contemporary culture the stock market is often equated with gambling, which is definitely a zero-sum game.
Those who wish to sustain currency substitution base their belief in lessons from the past: Zimbabwe abolished its currency as a measure to deal with risks of rapid devaluation, exchange rate uncertainty for Zimbabwean businesses and exchange rate transaction costs for both businesses and tourists.
Yadix is a leading ECN/STP Forex Broker providing services and trading facilities to retail, institutional and professional clients globally with particular focus on forex trading strategies such as scalping and the acceptance of forex scalping systems.
The rest of the brokers, trust me, take every precaution to ensure they’re protected from scalping disasters: they evaluate clients’ trades, check how long clients hold positions open, how frequently they trade, how successful they are with the short term trades, whether they use any expert advisors and so on. Forex brokers, who will not tolerate scalpers, mention scalping rules and restrictions in their Terms & Conditions, which traders rarely read, by the way, when opening trading accounts.
However, think of it this way…no one trading entity will ever accumulate all the money invested in the forex market, it’s impossible…the brokers and the banks will take a cut of every transaction, and thus, it’s impossible for a 1-complete winner.