yandex watch
forex ask logo
forex ask banner
Welcome, Guest

Forgot Password

Not yet a Member? Register Here

Loader

The Forex Market - Where and Who They Are

When we say “market”, you tend to think of one common place where people go to buy goods and services. You think of shopping malls, or a line of stalls, or a lot of people gathering in one place. In the sense of the financial markets, this also rings true. Stock exchange markets such as the New York Stock Exchange and the NASDAQ have trading floors where brokers and traders alike come together. There are financial hubs all over the world that accommodate the various financial markets. However, in  the case of the Forex market, it’s a whole new story.

The Forex market has no physical market. It exists online through trading platforms and different kinds of financial institutions and operates 24 hours a day using various channels of transaction. The Forex market exist where there is an exchange of currencies.

These exchange of currencies only occur in four financial institutions: retail forex brokers, central banks, commercial businesses, and interbank market.

Retail Forex Brokers

Retail forex brokers are perhaps the most common with most individual clients. Through them, anyone can be a trader using their online trading platforms. Although it only makes up for a small part of the total volume of currencies exchanged in the world everyday, it is still an integral part of the forex market.

Central Banks

Banking institutions are one of the bigger players of the forex market. They are, in fact, one of the main players that buy and sell currencies and regulate the money supply, implement and adjust interest rates, and make sure inflation is manageable. Most nations have central banks that ensures that currency rates are at their maintaining levels. They help the economy and the currency by using national funds to stabilize the markets.

Commercial Businesses

Businesses, especially international companies that has trades overseas often make use of foreign exchange markets because they deal with currency exchanges. They may have to conduct business in another country’s local currency or cater to foreign customers. Either way, they too participate in the forex market.

Interbank Market

The biggest group that make up the forex market is the interbank markets. It contains all mentioned here. Traders go to banks to intermediate their forex transaction while banks themselves take part in the market as well.

All in all, there is no central location for the forex market and no central authority to control the prices. Everything depends on everyone. Participating in the forex market can be rewarding but also can be very risky.

Created by : Alex
Published : 21 Jul 2016

No have comment

Comment :

Comment
<a href="https://www.instaforex.com/">InstaForex portal</a>
<a href="https://www.instaforex.com/">Forex Portal</a>
<a href="https://www.instaforex.com/">InstaForex portal</a>