For the first entry to our weekly Vantage FX Snack series, we delve into the reasons why the Forex market is so popular, and how affiliates can benefit from trading online.
What is the Forex market and why is it so popular?
The Forex market is one of the most important trading markets in the world today. We take a look at why it is so popular and how trading works in general.
Over the course of the next 6 weeks we’ll be looking at how the Forex industry works, how you as an affiliate can benefit from it and what sort of customers are trading online.
With a better understanding of the marketplace, you could increase your affiliate revenue significantly when working with a reputable forex company.
What is Forex Trading?
The Forex market, otherwise known as the Foreign Exchange Market, is a global market which monitors the value of currencies. As a decentralised market, it is responsible for the transaction and exchange of all currency and sets the foreign exchange rates used around the world.
The transactions themselves are fairly straightforward; one currency is traded against another in pairs. For example, EUR/USD with the Euro expressed in dollars. It is estimated that approximately $5 trillion is traded every day; a figure far greater than anything the stock markets trade.
It has been ever-changing since the modern market emerged in the 1970s and it is likely that it will continue to evolve in the future.
How is it Changing?
To put it simply, the introduction of cryptocurrencies caused a massive ripple across the exchange world and the Forex market is learning how to adapt to be able to stay competitive. Cryptocurrencies are incredibly popular as they are incredibly volatile in nature.
Whereas one individual might struggle to make money trading in Forex, he might be able to make thousands if he invests correctly in the right cryptocurrencies.More and more traders are being introduced as viable routes for people to trade with.
The combination of the volatility of both the cryptocurrency and Forex markets make this a very attractive prospect for some people who are willing to trade.
Why is it so Popular?
Forex trading is increasingly popular amongst a number of different types of customer groups. Traders like it because it offers far greater opportunities to make money quickly than the traditional stock market. Not only are there far more transactions, as mentioned above, but the market is also open 24 hours a day, 5 days a week.
This offers a much greater scope for executing trading; unlike the various stock markets of the world which are only open for trading during certain hours. Therefore, many of the individual traders prefer to pick up the art of trading as a part-time job, squeezing in a few hours work after their normal job.
Institutions like banks like to trade Forex as it allows them to engage in the status of their currency on a global level. Many interventions take place every day, with deals struck in an attempt to raise or lower their national currency.
While it may seem unusual for a bank to want to lower their own currency value, it can be useful for increasing the price of products abroad. Strategies such as these are used by banks to keep their products and the products their countries can import or export competitive on a global level.
Why should affiliates Pay Attention to Forex?
If you are an affiliate of a Forex program, you stand to make more money than if you were trying to trade yourself. Through links on your website and other means, you can earn easy commission.
As the biggest industry in the world, Forex quite rightly offers some extremely lucrative opportunities to its affiliates and there is always room for more growth. Trading can be profitable but it is extremely unstable.
For a profit which requires very little experience, affiliates should consider including a Forex link amongst their acquisition portfolio as the crossover of customer from iGaming to Forex trading is closely linked.
Plus, involvement with Forex will give some insight into how your other ventures are fairing on a global scale. Keep an eye on how trends are changing and you may get a much-needed insight into whether you should look to sell some of your other website entities.
Forex is one of the most powerful systems on the planet and it will only benefit you to learn how to correctly capitalise on it.