Technology is changing the way to invest in forex
Technology and stock concept.
Double exposure The currency market, or what is the same, the foreign exchange market, has facilitated international trade since the days when communications were much slower than today, especially since the Bretton Woods agreement decoupled the price of the dollar (world reserve currency) from the gold standard, because although currency changes have also been made before, since the end of the gold standard, the dollar exchange rate was not more fixed and the US currency began to float freely against the rest of the international currencies, which was no small thing, since the dollar is in the most liquid pair exchanges. Although this market was initially limited to a more professionalized field, it has become in recent years more and more accessible to the general public, so it is necessary to know not only how to go about it, but also the potential risks, because indeed, it there are risks as well as potential opportunities.
Forex on the mobile
The internet and smartphones have been two of the most disruptive technologies of the 21st century, and as a result, connectivity between people around the world has increased in ways no one anticipated, and allows all access in the same way. Services hitherto reserved for professionals or which required a very significant effort on the part of amateur traders. Now this is no longer the case, since anyone of legal age can trade forex as long as they have a mobile phone that can connect to the internet (this can also be done from the computer, and in fact it is the most comfortable method for, among other things, viewing charts and analyzes) to be able to open a short or long position anywhere and at any time, and this of course comes with risks, such as the fact that the investor does not '' invest not enough time to know the instruments or what it means to trade with leverage and its risks, very different from a classic sale, despite the fact that a lot of novice investors can confuse them into believing that Forex trading involves the acquisition of currency, and it is by no means the case. For the rest, forex is a market well known to the most traditional investors, probably along with the commodities market and the stock market, but which is generally the entry point for a good number of investors new to trading, perhaps. to be because it manipulates concepts. . with those that most people know, which, thanks to technology, complement each other very well with the greater accessibility of tools such as the economic calendar, which makes it easier to manage information that affects the price of currencies, such as quarterly unemployment data, the CPI or a multitude of industrial indicators, to name but a few examples. In addition, forex brokers may offer other instruments with which to trade on their platforms, which have their own characteristics and peculiarities. Not only the way of investing has changed, but also the instruments Before 2009 there were no cryptocurrencies, and today only bitcoin trades above $ 50,000 and capitalizes over $ 50,000. a trillion dollars, and of course, they have become one more instrument to carry. excluding trade. , although, as you have already said, they have some peculiarities, such as the level of leverage allowed on some platforms can be much lower, since it is a very volatile asset and an effect Too much leverage would imply excessive risk even for the most experienced traders. To get an idea of what volatility entails just look at a bitcoin chart, if you look hard enough you can find instantaneous drops of thousands of dollars every now and then that sometimes only respond to action. of a whale. , a trader who correctly predicted an uptrend and opened a long position will also see his position close to it, so it is very important to take into account the level of leverage used.