Currency trading gaining popularity
It appears that the search for prosperity has helped drive currency trading to new heights of worldwide popularity. I can see why. The leverage is powerful, and with the ability to make money in any prevailing market trend, bullish or bearish, this trend will only continue.
With the collapse of the dollar creeping up on the world slowly, there will be no shortage of headlines to drive the common investor to currency markets.
The Bank for International Settlements said earlier this week that global currency trading has climbed to $4 trillion a day, up from $3.3 trillion three years ago, before the financial crisis, and up from about $1 trillion just 10 or 12 years ago. That dwarfs trading in the U.S. stock market, for instance, which was about $134 billion in April, according to The Wall Street Journal. And trading in the U.S. Treasury market, the most important bond market in the world, was about $456 billion a day in April, the paper said.
The growth in currency trading is partly attributable to small investors, who have flocked to currency trading in the last few years, driven by a disdain for stocks and a surge in the number of exchange-traded funds offering currency exposure. With stocks basically flat in the U.S. over the last decade and real estate in a prolonged decline, it’s no surprise that investors are looking for other places to make money.