Our New Articles
Forex, Nature Of The Foreign Exchange Market
by ActionForex.com
The Foreign Exchange Market is an over-the-counter (OTC) market, which means that there is no central exchange and clearing house where orders are matched. With different levels of access, currencies are traded in different market makers: The Inter-bank Market - Large commercial banks trade with each other through the Electronic Brokerage System (EBS). Banks will make their quotes available in this market only to those banks with which they trade. This market is not directly accessible to retail traders.
The Online Market Maker - Retail traders can access the FX market through online market makers that trade primarily out of the US and the UK. These market makers typically have a relationship with several banks on EBS; the larger the trading volume of the market maker, the more relationships it likely has.
Market Hours Forex is a market that trades actively as long as there are banks open in one of the major financial centers of the world. This is effectively from the beginning of Monday morning in Tokyo until the afternoon of Friday in New York. In terms of GMT, the trading week occurs from Sunday night until Friday night, or roughly 5 days, 24 hours per day.
Price Reporting Trading Volume Unlike many other markets, there is no consolidated tape in Forex, and trading prices and volume are not reported. It is, indeed, possible for trades to occur simultaneously at different prices between different parties in the market. Good pricing through a market maker depends on that market maker being closely tied to the larger market. Pricing is usually relatively close between market makers, however, and the main difference between Forex and other markets is that there is no data on the volume that has been traded in any given time frame or at any given price. Open interest and even volume on currency futures can be used as a proxy, but they are by no means perfect.
About The Author: Action Forex (http://www.actionforex.com) is set up with the aim to empower individual forex traders by providing insightful contents. Analysis reports, live pivot points on majors and crosses, etc are provided with collection of carefully selected educational articles and free trading ebook downloads.
These articles on lifestyle and more
Return to the selection of forex
You may want to try these articles on forex
Forex, How To Find The Best Forex Trading System by Geri Mason Approximately 583 Words
Forex, Will Forex Trading Be Right For You? by Geri Mason Approximately 571 Words
Forex, Forex by Chuck Crawford Approximately 861 Words
Forex, What Is Forex? by Willie Reynolds Approximately 529 Words
Forex, Play Nostradamus On Forex Swings With Oil Trends by Joseph Plazo Approximately 888 Words
Forex, Introduction To Forex Market by ActionForex.com Approximately 355 Words
Forex, Why Is A Mentor Necessary To Succeed At Forex (fx) Currency Trading? by Dusty Blackwell Approximately 494 Words
You may want to try these websites for additional information
http://en.wikipedia.org/wiki/Foreign_exchange_market
http://www.forex.com/linkc.html
http://www.forexnews.com/
The information provided in this article is the express opinion of the author. Exchangenet is not responsible for the content!
The Foreign Exchange Market is an over-the-counter (OTC) market, which means that there is no central exchange and clearing house where orders are matched. With different levels of access, currencies are traded in different market makers: The Inter-bank Market - Large commercial banks trade with each other through the Electronic Brokerage System (EBS). Banks will make their quotes available in this market only to those banks with which they trade. This market is not directly accessible to retail traders.
The Online Market Maker - Retail traders can access the FX market through online market makers that trade primarily out of the US and the UK. These market makers typically have a relationship with several banks on EBS; the larger the trading volume of the market maker, the more relationships it likely has.
Market Hours Forex is a market that trades actively as long as there are banks open in one of the major financial centers of the world. This is effectively from the beginning of Monday morning in Tokyo until the afternoon of Friday in New York. In terms of GMT, the trading week occurs from Sunday night until Friday night, or roughly 5 days, 24 hours per day.
Price Reporting Trading Volume Unlike many other markets, there is no consolidated tape in Forex, and trading prices and volume are not reported. It is, indeed, possible for trades to occur simultaneously at different prices between different parties in the market. Good pricing through a market maker depends on that market maker being closely tied to the larger market. Pricing is usually relatively close between market makers, however, and the main difference between Forex and other markets is that there is no data on the volume that has been traded in any given time frame or at any given price. Open interest and even volume on currency futures can be used as a proxy, but they are by no means perfect.
About The Author: Action Forex (http://www.actionforex.com) is set up with the aim to empower individual forex traders by providing insightful contents. Analysis reports, live pivot points on majors and crosses, etc are provided with collection of carefully selected educational articles and free trading ebook downloads.
These articles on lifestyle and more
Reprint this article free of charge as long as you keep the author's resource box or bio intact and the links active. A copy of the ezine or URL of the page where the article was reprinted emailed to the author would be very much appreciated. forex
Return to the selection of forex
You may want to try these articles on forex
Forex, How To Find The Best Forex Trading System by Geri Mason Approximately 583 Words
Forex, Will Forex Trading Be Right For You? by Geri Mason Approximately 571 Words
Forex, Forex by Chuck Crawford Approximately 861 Words
Forex, What Is Forex? by Willie Reynolds Approximately 529 Words
Forex, Play Nostradamus On Forex Swings With Oil Trends by Joseph Plazo Approximately 888 Words
Forex, Introduction To Forex Market by ActionForex.com Approximately 355 Words
Forex, Why Is A Mentor Necessary To Succeed At Forex (fx) Currency Trading? by Dusty Blackwell Approximately 494 Words
You may want to try these websites for additional information
http://en.wikipedia.org/wiki/Foreign_exchange_market
http://www.forex.com/linkc.html
http://www.forexnews.com/
The information provided in this article is the express opinion of the author. Exchangenet is not responsible for the content!