f-man
4Xangels Representative
- Messages
- 744
This magic number $3.980.000.000.000,00 was written as the latest estimation of Forex Turnover per day!!!
It's a couple of sizes too big compared with anything else on this planet, but how is it calculated?
I personally believe that it is not the actual amount of money really dealed, but there are the following points to take into consideration:
1. How many transactions are taken into account?
You place an order. it means You Buy and your Broker Sells
You close the order, it means You Sell and your Broker Buys
There are total 4 transactions for 1 trade!
If they count everything, then you need to divide it by four to get the actual amount of invested money in the trade.
2. The leverage
Most retail Forex is made with a 50+ leverage. Of course I think the institutions who manage large scale accounts do not use such leverage, which menas the absolute average leverager is a number between 10-40.
If they count the amount of the leveraged transaction (which I believe they do) then we have to divide the amount by the absolute average leverage.
Does anybody know?
It's a couple of sizes too big compared with anything else on this planet, but how is it calculated?
I personally believe that it is not the actual amount of money really dealed, but there are the following points to take into consideration:
1. How many transactions are taken into account?
You place an order. it means You Buy and your Broker Sells
You close the order, it means You Sell and your Broker Buys
There are total 4 transactions for 1 trade!
If they count everything, then you need to divide it by four to get the actual amount of invested money in the trade.
2. The leverage
Most retail Forex is made with a 50+ leverage. Of course I think the institutions who manage large scale accounts do not use such leverage, which menas the absolute average leverager is a number between 10-40.
If they count the amount of the leveraged transaction (which I believe they do) then we have to divide the amount by the absolute average leverage.
Does anybody know?