Significance of Forex

Significance of Forex

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I was wondering if some of you more experienced, wiser traders had any wisdom to share about the importance of (if any) Forex Options. Since there is no "technical" order flow in forex that I am aware of yet, it seems to me, this seems like a loose-knit general overview of where the big concentration of money is being put into. I use FXCM right now (hold your comments please [img]images/icons/icon10.gif[/img]) and noticed they give you a great deal of Options info. I BELIEVE (not sure) that this information comes from Thomson financial, which is a very reputable information/data service among many other things. So if you were to follow where the money is being thrown by larger banks or institutions, wouldn't it make sense to follow the big money? Of course I'm sure it isn't that cut and dry, but if anyone knows anything else about this, please respond.

FOREX- Introduction

What is Forex (Foreign Exchange)?

Foreign Exchange (FOREX) is the arena where a nation's currency is exchanged for that of another. The foreign exchange market is the largest financial market in the world, with the equivalent of over $1.9 trillion changing hands daily; more than three times the aggregate amount of the US Equity and Treasury markets combined. Unlike other financial markets, the Forex market has no physical location and no central exchange. It operates through a global network of banks, corporations and individuals trading one currency for another. The lack of a physical exchange enables the Forex market to operate on a 24-hour basis, spanning from one zone to another in all the major financial centers.

Traditionally, retail investors' only means of gaining access to the foreign exchange market was through banks that transacted large amounts of currencies for commercial and investment purposes. Trading volume has increased rapidly over time, especially after exchange rates were allowed to float freely in 1971. Today, importers and exporters, international portfolio managers, multinational corporations, speculators, day traders, long-term holders and hedge funds all use the FOREX market to pay for goods and services, transact in financial assets or to reduce the risk of currency movements by hedging their exposure in other markets. MG Financial Group’s combination of low margin and high leverage has changed the way the Interbank currency market operates. We have done this by opening the doors of Forex to retail investors, giving them the professional tools and services needed to trade effectively in an independent atmosphere.

MG Financial Group, now operating in over 100 countries, serves all manner of clients, comprising speculators and strategic traders. Whether it’s day-traders looking for short-term gains, or fund managers wanting to hedge their non-US assets, MG's DealStation™ allows them to participate in FOREX trading by providing a combination of live quotes, Real-Time charts, and news and analysis that attracts traders with an orientation towards fundamental and/or technical analysis.