Talking of world’s largest market by volume? Foreign Exchange market is the answer without a single second thought. Including all aspects of buying, selling and exchanging currencies, it is the global market for trading currencies. There are many countries being associated with this market and trading the best out of it.
Pakistan is a country where people have different mindsets and as per statistics Forex trading is uncommon. However, Pakistan also features the existence of Forex trading but it is not very common up till now. There is not just one but a good number of factors that combine in this regard. People have got different mindsets and they need time to get influenced with a completely new trend of trading.
The statistics also prove the fact that Pakistan is still running behind in the race of forex trading. The factors that make Forex trading uncommon in Pakistan are shared as below!
Lack of Awareness
The common people living in Pakistan are used to their routine jobs, working day and night to earn their fortunes. How one would expect from them to make Forex trading their common practice. Forex market is still not known to a large number of people in Pakistan and the unawareness in this regard keeps the significance of Forex trading to a lighter path in Pakistan.
Unknown Usability
People usually don’t know the technicalities and usage of the forex trading and the terms and conditions of this market. This is totally related to people not being aware of the market. Forex trading needs a complete guideline for one willing to start off with it.
High Risk – High Leverage
It is a market always available on high leverage. You can get profit/loss multiple times of the trading capital. In case of profit, you would be enjoying your stake by your broker through your trading but never forget the chance of getting loss. It would become your destiny the same way.
Lack of Motivation
The lack of knowledge and usage of Forex trading with a fear of losing shares, people get demotivated and extend their plan to involve with this market. The awareness and knowledge can help in compelling folks to trade through Forex.
Complex Process of Price Determination
The dependence of Forex trade market on factors like political and economic conditions. These factors keep affecting the rates of currencies and you can always be a victim of being lost or perplexed in a confusion. Uncertainty can frustrate the traders from the market. There are predetermined technical indicators that are recommended for the Forex market of the world.
High Volatility
The volatility of the Forex market is a very common and understandable issue. Trader has got no control over economic and geopolitical developments so you never know the time when you could face huge losses. Things going wrong with stock market can completely deviate the direction of Forex market as well.
Lack of Transparency
Forex market is clearly dominated by brokers and it results in non-transparency of this market to some extent. The trader is not in the direct contact with the trade orders, its fulfillment and views as broker is there to manage in be.
In case you still have any queries or want to know about it, let us know about it by commenting below.
Every risk taker should try the forex. Nice article Nida. Keep it up.
thanks Atul 🙂