eToro – Forex Trading Forum

[OsamaAoudi]

hey all i have a question ..

what will happen with forex trading if this economic troubles persist for a long time??

thanks all

[BlueinGreen]

In the Forex market currencies can only lose value against other currencies, so there is always an opportunity for you as a trader to take advantage of, even if the crisis continues, there are still differences between the economies of different countries and therefore a reason to buy or sell a particular currency.

This in contrary to the stock market where a stock loses its real value ( the value against it self) and in a crisis most stocks do lose their value, so you better not trade stocks for as long as the crisis continues.

[Tropezienne]

Forex trading in effect in recession proof because it is not swayed by one country, government, or industry. In fact, it is truly the closest thing to a global open market, as it is traded twenty-four hours a day for five and a half days each week.

If somebody comes to forex after trading the stock market, they sometimes cannot understand why exactly forex global market is entirely recession-proof. It’s simple really - whereas stocks make money when their value apprciates, in the forex market money can be made any time that any currency changes in value. Whether it goes up or down does not really matter.

All currencies are traded in pairs. This involves the concept of relative value. So, if the Euro depreciates relative to the other major world currencies, a forex trader can make money by selling the Euro and maybe buying dollars and yen at the same time.