Resolved Question
How do plastic money and digital currency affect forex trading?
Hey, guys. I’m confused. I’m hearing about paper money, plastic money, as well as digital and physical currencies. How can these new developments affect Forex? Please, I need some explanation.
12 months ago
Best Answer - Chosen by Voters
If I'm not mistaken, paper money and physical currencies are the same and they refer to the actual bank notes while plastic money is another term for credit/debit cards. Digital currency is money exchanged electronically, thru computer networks, internet, or digital stored value systems like your good ole transit payment systems. This is very similar to cash transactions. I think these developments have minimal effect on forex trading because these are simply the means through which money circulates in the market. These hardly change the money supply in a particular economy. One possible relation to the currency market that I can think of is that more of these developments allow for faster and more frequent transactions and this could probably encourage more economic activity. For instance, the development of credit cards enable people to make more purchases. These could pump up sales, production, and overall economic activity...
12 months ago
Answers (6)
Currency refers to the form of money used in a country. People use paper bills and coins, as well as plastic money these days. And I think that any transition of paper currency to plastic currency will have no effect to Forex. The logic is simple: paper or plastic—we’re still using currency.
12 months ago
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What’s confusing here? We trade using different currencies; and in a sense, we’re just trading with imaginary currencies. It’s clear that we earn or lose profits even though we sometimes never see these different currencies physically.
12 months ago
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No matter what shape or form, currency is still a currency. The market will not suffer in any way at all.
11 months ago
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As long as there are safe ways to get hold of all my profits, I don’t mind dealing with plastic cards and with different currencies.
11 months ago
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I don’t see anything wrong with plastic or physical money. If there’s a transition, I don’t think this will have any effect to Forex.
11 months ago
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We have come to digital age and we should all be happy about it. That’s my stand. ‘Course, forex will not be affected—unless only one currency left. Just think about this: What is trading without currencies, eh?
11 months ago
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