The following FOREX description was provided by tdooley in chat today. There is a lot of confusion as to what Forex is and what it does and doesn’t do. This is what he said:
FOREX is a digital trading of currency pairs. Some large Banks, together, "make the market". They simply match sellers with buyers at a spread (where they make their money). They do not buy or sell currency - just make a market.
FOREX operates 24 hours starting at 5 PM Sunday until 5 PM Friday. You may see some after hours trading made by the BIG BOYS. As to IQD, it is NOT a recognized tradable currency until RV. Most likely it will not trade on FOREX for a few days due to likely to be sporadic.
Some currencies are restricted due to volume and lack of market or even need to be on FOREX, (IQD is restricted) or some other reasonable concern to the big Banks. FOREX is highly leveraged and NOT for the unskilled. The skilled and big traders can and do manipulate the market .
TDOOLEY COMMENTS ON FOREX 4-By manipulate, I do not mean illegally, they simply have the $ power to buy or sell in such volume to wipe out the less fortunate with BIG movements that close out your trades wherein you do not have the staying power. There are platforms out there that will trade your account for you that do very well.
Unless you are going to spend a lot of time and money becoming skilled, and a lot of time in front of the computer, DO NOT trade the FOREX.
Today’s chart: Spread 1176/1226 High 1178 Low 1136.4 Open 1137.3 Change 38.7. And this from me…hope it helps. FOREX is a small part of what we have all been watching. It has never been about the rate so much as it has about the change in rate, the movement. FOREX feels the Dinar is important enough to post on its site. It is sending signals (its opinion) out to the market.
What I discovered over this past year is an unusual pattern just before and after any of the major pushes to get out the RV. Specifically, last Thanksgiving (2013), then in April, then July, and lastly end of this October. Over the past two weeks we have seen the largest spreads and most active polling (rate changes). These are not coincidental.
FOREX is sending out code to its key members. Companies are plugging this info into sophisticated algorithms and trying to determine trading deals and market positions. It’s all a bit esoteric, and folks are right when they say it really doesn’t matter, because for most of us it doesn’t.
But if you are setting up a multi-million dollar foundation and plan to participate in the next basket, or invest internationally, it matters a great deal. If you are one of those people who plans to get into big money issues I recommend you become a member of FOREX, take its tutorials, buy a Bloomberg Terminal (24K) and get used to following your money.
I also recommend you take Ray’s seminar and begin an ongoing financial education. Get your series 6 and 7 licenses. You should at least be able to follow the conversations of the experts you will be hiring. Hire a pro to do your trading.
Being a member of FOREX will provide you with up-to-the-minute, before all the secondary platforms, information. This is not plug and play, you will have to work at it. If you do not understand what your money managers are doing on your behalf you risk losing it. Best Iko