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 Sat. December / 21 / 2024 India's forex reserves dip to nearly six-month low Reuters India South Korea to ease foreign exchange regulations, expand FX swap line Korea Economic Daily 'There is High Migration Between FX/CFD and Crypto Traders': TradingView’s Rauan Khassan Finance Magnates How Currency Trading Works Investopedia Euro FX EUR/USD Futures Overview CME Group VCG Markets Unveils Cutting-Edge Forex Trading App Markets Insider IG US Bucks Trend in Sluggish Forex Trading Market Finance Magnates Forex Demo Account Trading Investopedia AUD/USD, USD/CAD, NZD/USD: Commodity Currencies Hitch a Ride on China’s Yield Curve Rollercoaster FOREX.com US Currency Pairs: What They Are and How They Work Investopedia Stop Hunting With the Big Forex Players Investopedia China is considering softer currency Reuters.com When Foreign Exchange Intervention Can Best Help Countries Navigate Shocks International Monetary Fund How Leverage Works in the Forex Market Investopedia 8 Forex Trading Tips Investopedia Top 5 Books for Beginner Forex Traders Investopedia USD/JPY Forecast Benzinga How to Trade Forex on News Releases Investopedia 5 Forex Careers for Financial Professionals Investopedia A perfect storm for the Canadian dollar ING Think How Would a New BRICS Currency Affect the US Dollar? (Updated 2024) Investing News Network What Is the BRICS Group and Why Is It Expanding? Council on Foreign Relations EUR/USD Analysis Today 19/12: Nears Parity (Chart) DailyForex.com Dollar Dominance in the International Reserve System: An Update International Monetary Fund What Are the Most Commonly Traded Currency Pairs? Investopedia FOREX.com vs. Robinhood: Which Broker Is Right for You? The Motley Fool Fed forces Asia to choose: Accept weaker currencies or push back The Economic Times What Is the USD/JPY Currency Pair? Investopedia Most used currencies SWIFT 2024 Statista Is the Iraqi Dinar a Wise Investment? Investopedia Most traded currencies in forex 2022 Statista Indian Rupee Decline: Rupee falls 12 paise to all-time low of 85.06 against US dollar in early trade The Hindu Carry trades: What are they and why are they impacting the global economy? World Economic Forum USD/BRL Analysis Today - 17/12: Buying Stays Strong (Chart) DailyForex.com What Is an ECN Broker? Investopedia USD/JPY Analysis Today 19/12: Five-Month High Gains (Chart) DailyForex.com EUR/USD Forecast Today 19/12: Weakened Before FOMC (Video) DailyForex.com How Forex PAMM Accounts Work Investopedia USD/CAD Analysis Today-18/12: Bullish Yet Vulnerable (Chart) DailyForex.com Best Forex Brokers In 2024 Bankrate.com Forex Spread Betting: What It Is and How It Works Investopedia USD/PHP Forecast Today 20/12: Tests 59 Resistance (Video) DailyForex.com 15 Banks and Credit Unions That Exchange Foreign Currencies Business Insider USD/TRY Forecast Today 19/12: Extends Losses (Chart) DailyForex.com FX Spot+ CME Group Gold Analysis Today 18/12: Prices Steady (Chart) DailyForex.com EUR/USD Forecast Today 20/12: Drops Amid USD Strength -Video DailyForex.com Bilateral Currency Trade a la Africa: Understanding Trends Driving Currency Integration Across the Continent TRENDS Research & Advisory WTI Crude Oil Forecast Today - 19/12: Crude Oil Dips (Chart) DailyForex.com Gold Analysis Today 17/12: Continued Upward Trend (Chart) DailyForex.com
|