Читать книгу Currency Trading For Dummies - Kathleen Brooks - Страница 66

This is where you and we fit into the big picture of the forex market. If the vast majority of currency trading volume is speculative in nature, then most of that speculation is short-term in nature. Short-term can be minute-to-minute or hour-to-hour, but rarely is it longer than a day or two. From the interbank traders who are scalping EUR/USD (high frequency in-and-out trading for few pips) to the online trader looking for the next move in USD/JPY, short-term day traders are the backbone of the market.

Intraday trading was always the primary source of interbank market liquidity, providing fluid prices and an outlet for any institutional flows that hit the market. Day traders tend to be focused on the next 20 to 30 pips in the market, which makes them the source of most short-term price fluctuations.

When you’re looking at the market, look in the mirror and imagine several thousand similar faces looking back, all trying to capture the same currency trading gains that you’re shooting for. It helps to imagine this so you know you’re not alone and also so you know who you’re up against.

The rise of online currency trading has thrust individual retail traders into the mainstream of the forex market. Online currency brokerage firms are referred to as retail aggregators by the institutional interbank market, because brokerage firms typically aggregate the net positions of their clients for hedging purposes. The online brokerages then transact with the interbank market to manage their market exposure.