Currency Trading Information Channel |
|
|
|
A Look at Forex Market MakersThe investor in the currency market takes for granted that a pair of currencies can be bought or sold at a moment's notice. Once an order is placed with a broker, the trade is executed within seconds. It is, of course, not as easy as that. Whenever a pair of currencies is bought or sold, there must be someone at the other end of the transaction. It is very unlikely that the investor will always find someone who is interested in buying and selling the same two currencies at the same amount, and at the same time. Hence, the question remains, "How is it possible that the forex investor can buy or sell at any time?" This is where the forex market makers come in. The forex market maker is a bank or brokerage company that stands ready, every second of the trading day with a firm bid and ask price. This is good for the investor because when the investor chooses to buy and sell a pair of currencies, the market maker will purchase from and sell to the investor, even if they do not have a buyer and seller lined up. In doing so, they are literally "making a market" for the currencies. Forex market makers ensure that the market is always functional and that the currencies in it will always fetch the market rate. Forex market makers do so by updating their prices at intervals of at least 30 seconds and undertaking to trade if this is requested. Forex market makers must fulfill their obligations irrespective of whether the economic situation is favorable or unfavorable, or whether they lose or profit by doing so. Typical forex market makers include Gain Capital, CMS Forex, Forex Capital Markets (FXCM), and Global Forex Trading, all of which are regulated by the Commodity Futures Trading Commission (CFTC) of the USA. Another prominent forex market maker is Saxo Bank, which is regulated by the Financial Services Authority (FSA) of Denmark. Until recently, central banks, commercial banks and investment banks dominated the forex market. Due to the entry of forex market makers, other market players like international money brokers, large multinational companies, registered dealers, global money managers, and private speculators have entered the market in large numbers. Forex Brokers Info provides detailed information on forex brokers, forex trading and market makers, and other forex-related topics. Forex Brokers Info is the sister site of Incorporating in Florida Web.
MORE RESOURCES updated Thu. March / 28 / 2024 Stock market today: World shares are mostly higher after S&P 500 sets another record - Yahoo Finance Foreign exchange contact group (FXCG) European Central Bank Stock market today: Asian shares trading mixed after Wall Street's momentum cools San Francisco Chronicle 3 Best Forex Brokers for 2024 NerdWallet Morning Bid: Yen traders on tenterhooks Yahoo Canada Finance Yen steady after intervention warning, dollar dips Yahoo Finance FOREX.com vs. Robinhood: Which Is Right for You? The Motley Fool Rupee falls 6 paise to settle at 83.39 against US dollar The Economic Times EUR/USD Analysis Today 28/3: Pressures Ahead (Video) DailyForex.com Forex Today 28/03: Fed's Waller: Slow on Rate Cuts, No Hikes DailyForex.com This Is How You Make Money Trading New York Magazine Stock market today: Wall Street ticks quietly higher ahead of consumer confidence report The Atlanta Journal Constitution Best Forex Brokers In March 2024 Bankrate.com USD/PKR Analysis Today - 28/03: Steady USD/PKR Trend (Chart) DailyForex.com Europe Playing Bigger Cryptocurrency Role ETF Trends USD/TRY Forecast Today 28/3: Struggle Against USD (Chart) DailyForex.com United States GDP Expanded in Fourth Quarter by 3.4% DailyForex.com AUD/USD Signal Today - 28/03: AUD Weakness Noted (Chart) DailyForex.com U.S. dollar closes lower on Taipei forex market Focus Taiwan Towards Increasing Complexity: The Evolution of the FX Market - Liberty Street Economics Liberty Street Economics - EUR/USD analysis: Will US dollar retreat again? FOREX.com US Forex Trading for Beginners NerdWallet EUR/JPY Forecast Today - 28/03: Euro Dips vs Yen (Chart) DailyForex.com Dollar firm after Fed comments; yen under close watch The Economic Times Why Is the Forex Market Open 24 Hours a Day? Investopedia Rupee trades in narrow range against US dollar in early trade The Economic Times EUR/USD Analysis Today 27/3: Tight Range Trading (Chart) DailyForex.com China's New Currency Playbook Council on Foreign Relations How Often Do Exchange Rates Fluctuate? Investopedia GBP/USD Analysis Today 28/3: Data Determines Fate (Chart) DailyForex.com Trader's Case Tests DOJ's Policing of Global Currency Market The Wall Street Journal Forex Today - 27/03: Japanese Yen Hits 34-Year Low DailyForex.com Rupee turns flat at 83.33 against US dollar amid high crude oil prices Business Standard GBP/USD Signal Today - 28/03: Pound Risk Pre-PCE (Chart) DailyForex.com How can blockchain platforms make currency trading cheaper? Financial Times USD/JPY Forecast Today 28/3: Aims for 155 Yen (Video) DailyForex.com USDBRL Analysis Today - 26/03: USDBRL Range Reversal (Chart) DailyForex.com USD/MXN Analysis Today - 25/03: Bearish USD/MXN (Chart) DailyForex.com USD/SGD Analysis Today - 26/03: USD/SGD Reflexive Range DailyForex.com EUR/USD, Oil Forecast: Two trades to watch FOREX.com US USD/JPY Analysis Today 25/3: Central Bank Policies (Chart) DailyForex.com GBP/USD Analysis Today 27/3: Continues Bearish Trend (Chart) DailyForex.com Trading Costs - Trading Charges FOREX.com
|