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[EDU-Bite Sized Mini Series]How Big is FX n a story of FXHello Fellow Traders! Here's the next installation for you on Forex , a bite sized mini series! Enjoy! The Forex market, also known as the foreign exchange market, is the largest and most liquid financial market in the world. Its size and liquidity are unparalleled, dwarfing all other financial markets in terms of daily trading volume and accessibility. With an average daily turnover exceeding $6 trillion as of 2021 , the Forex market operates 24 hours a day, five days a week, allowing traders to participate from anywhere in the world. One of the primary factors contributing to the immense size of the Forex market is its decentralized nature . Unlike stock exchanges, which are typically centralized, the Forex market operates through a global network of banks, financial institutions, corporations, and individual traders. This decentralized structure ensures continuous trading activity across different time zones, making it highly liquid and resilient to disruptions. The liquidity of the Forex market refers to the ease with which traders can buy or sell currency pairs without significantly impacting prices . This high level of liquidity is attributed to the vast number of participants and the sheer volume of transactions taking place each day. In the Forex market, traders have access to a wide range of currency pairs, including major pairs such as EUR/USD, GBP/USD, and USD/JPY, as well as minor and exotic pairs. Moreover, the Forex market offers unparalleled transparency and accessibility, allowing traders of all sizes to participate. Retail traders can access the market through online brokers, trading platforms, and mobile apps , while institutional players execute large trades through interbank networks and electronic communication networks (ECNs) . This accessibility ensures a diverse range of participants, contributing to market efficiency and liquidity. The size and liquidity of the Forex market also make it highly attractive to investors seeking diversification and risk management. Due to its sheer volume and depth, the Forex market is less susceptible to manipulation and price distortion compared to other financial markets. Additionally, the ability to trade with leverage allows traders to amplify their returns while managing their risk effectively. In conclusion, the Forex market's size and liquidity are unparalleled, offering traders unparalleled opportunities for profit and risk management. With its decentralized structure, continuous operation, and vast participant base, the Forex market remains the cornerstone of global finance, serving as a vital conduit for international trade, investment, and speculation. Thank you for your time and do checkout below for the previous post on what is forex if you have missed it! Signing off... STBB
Education
by Shadowing_The_Big_Boys
1. Bots for everybodyHello there! My name is Vlad I want to share my opinion regarding Pine bots. First of all I would like to inform - I do not believe in "Universal the best bot for every case". A lot of people agree with me, and here are few points of it: 1. Cryptocurrency market - not a robot, it is filled by real people. In this case you cannot predict their behaviour, but if you think you can - you shall loose your money faster than anyone else. Please remember - no one could predict crypto price movement more than with 60% successful trade deals. If You see somebody, who does better - check his activities once again before believe him ,probably this person tries to two-times you. 2. There is no bot can trade successfully only. There will be a lot of days/months every bot will lose you money.  3. Do not believe in any promise like "This bot is the best, You have to buy only and wait for your money! Just buy this program and enjoy your first million!" If you see that - just run out of it as fast as you can! Your money is at risk and you will pay twice - first for bot, second for trading. After all this notices it seems we can start. In this topic we will discuss what trading bot is and how and why it works. Every trading bot is nothing but written script with its behaviour. It fully depends on inputting data and outputting data(strange, isn't it?). but it is true and constant thing you should remember. No matter where this bot has been run - on your computer with a strong internet or on cloud(true for not-arbitrage only). Every bot takes information, process the data and return some value( to buy , for example). There is no universal bot which can be so adaptive to market to be able change its script fast and successfully and trade profitably all the time. I will describe the ML bots later, but notice -  it will be controversial topic 100%(HOLLYWAR!!!). First thing first. In this topic you will not find any information about arbitrage-bots. Lets have a look at two kinds of bots( in my opinion): 1. For short term trading 2. For long term trading Let's take a closer look at the first one. In this case we are trading inside one day(max one week). This case bots generally always use stop limits, always close position after the conditions are met. It does not keep a lot of open orders and positions and does not need huge capital to start with. Example - A bot gets: Input information - supertrend indicator(0 if red, 1 if green) Output - make an limit order for buy short(if supertrend red) and reverse to long(green). Inside the script could be a lot of different conditions like if, while, counts and values that makes the script choose when it should open the order and when should close. But in all the cases - it looks like that. Nothing else. The complexity of the script determines the rules for entering an order or, and is a reflection of the finished idea (trading strategy). The bot "in vacuum" does nothing but reflects the idea of the author of strategy. How can we see the success bot depends the most on strategy. Of course it is important to have the great cod inside bot, but without good strategy - it costs nothing. In the next post we will take closer look at long term bot trading and figure out what trading automatization is. Thanks for attention, Vlad.
Education
by Arivadis