RE: Forex and Crypto Trader, Perpetual Traveller and Anarcho-Capitalist Singing In!
Hi mate, nice to meet you
Short well presented trading lessons around the fundamentals would interest me. I'd like to learn how to choose, access and research interesting markets.
My limited understanding is Forex is exchanging fiat currencies, and Comex is commodities. Then the crypto which I understand a lot better have various exchanges like coinbase, polinex, bitfinex bittylicious etc.
Working with that limited paradigm I have a bunch of questions you could consider answering as you start to post: Firstly is anything analogous to the Crypto exchanges in the fiat/commodities world (like alternatives to forex). Now I guess you can buy precious metals and oil on Comex but I have no idea what else (could you get Avacados and grain?). Is there an advantage to trading metals on Comex rather than say BullionVault? and would they be allocated?
The underlying rules and pitfalls to both markets would also be interesting. When you trade on Forex, is there any kind of fractional reserve system in play? Same for Comex? Thats why I'm buying out of fiat in the first place!
Anything based around that kinda stuff would certainly keep me reading!
Best
Forex is a decentralized market, so exchanges like in crypto don't exist. There are large pools of liquidity (ECNs) that you could say are similar to exchanges though.
In terms of what markets to trade, I would suggest to go with liquid markets first. Obvious choices would be Gold, Oil, Wheat, Corn, Silver etc...First to try are the big two, Gold and Oil. Once your start to go down the rabbit hole are all sorts of things you can trade on futures markets like Azuki beans for examples.
There is no fractional reserve afaik, the money in your broker account is supposed to be segregated. In practice we know that's not always the case :)