Perhaps there is a FAQ somewhere that discusses these questions. If so, point me the way, please. I have same questions on how the Forex market really works.
1. Some people talk about the forex market being trillions a day. But, I understand that is really the ENTIRE foreign exchange that the forex spot market is just a fraction of. If so, roughly, how much is the forex spot market a day?
2. If I go long on, say, the EURGBP, in theory, I'm buying Euros and selling Pounds. In theory. Given that I have no Pounds directly, nor do I actually end up with Euros in my account that I could spend in Europe, I don't see how I could be doing that in reality. It seems like I'm just placing a bet on the EUR vs the GBP, and somebody else, like a bank, or another trader, is taking the other side of the bet, and the broker takes a commission for handling the bet.
3. I've heard it claimed that 90% of traders loose money in forex. Is this really true? And if so, with better software and better indicators, shouldn't this be changing? And if so, well, I know that it can't work if everybody is making money, so, if the percentage of winners to losers changes, wouldn't banks or brokers have to change the rules or commissions or something?
4. Speaking of winning and loosing, who is really making the money in this? I would figure its gotta be banks, or they wouldn't be doing it. Right?
1. Some people talk about the forex market being trillions a day. But, I understand that is really the ENTIRE foreign exchange that the forex spot market is just a fraction of. If so, roughly, how much is the forex spot market a day?
2. If I go long on, say, the EURGBP, in theory, I'm buying Euros and selling Pounds. In theory. Given that I have no Pounds directly, nor do I actually end up with Euros in my account that I could spend in Europe, I don't see how I could be doing that in reality. It seems like I'm just placing a bet on the EUR vs the GBP, and somebody else, like a bank, or another trader, is taking the other side of the bet, and the broker takes a commission for handling the bet.
3. I've heard it claimed that 90% of traders loose money in forex. Is this really true? And if so, with better software and better indicators, shouldn't this be changing? And if so, well, I know that it can't work if everybody is making money, so, if the percentage of winners to losers changes, wouldn't banks or brokers have to change the rules or commissions or something?
4. Speaking of winning and loosing, who is really making the money in this? I would figure its gotta be banks, or they wouldn't be doing it. Right?