learn forex

Forex Traders Come In Various Shapes And Sizes

Although there is no centralized Forex market and trading involves many different market makers rather than just a few specialists, there in nonetheless both a structure and a hierarchy to the foreign currency exchange market.

The foreign currency market is dominated by the InterBank market which represents the greatest volume of trading and mainly involves the currencies of the G8 countries. Together, these represent approximately 65 percent of the world economy. In the InterBank market major banks trade with each other on a credit-approved basis with lines of credit clearly established between individual banks. Trading is conducted through InterBank brokers and electronic brokerage systems or Reuters and the rates at which trading takes place are visible to all of the participants.

Below the InterBank market participants, such as smaller banks and corporations, have to trade through commercial banks. In this case however there are not normally any established lines of credit and this means that traders frequently trade at less competitive rates and are usually tied to using a single bank for all their foreign exchange dealings.

Until just a few years ago the foreign exchange market was not simply dominated by the major banks but was also very much an 'old boys club' which it was very extremely difficult to gain entry to. Today however technology has altered the market considerably and smaller investors can now get into the market and take advantage of the opportunities which were at one time only available to the members of 'the club'.

Access to the market has also been eased considerably in recent years by the changing nature of the market itself. Previously foreign exchange dealing was very much an activity associated with international trade and was seen as simply servicing the import and export markets. Now however investment plays a major part in the market and substantial capital sums flow between countries through participants such as mutual funds, institutional investors, insurance companies and others.

The size and extraordinarily diverse nature of the market nowadays, along with the ease of trading brought about by advances in technology, brings both high liquidity and price stability to the market and, unlike many other markets, the Forex market always boasts a large number of both sellers and buyers who together create an orderly market.



Recommended books from

The Ed Ponsi Forex Playbook: Strategies and Trade Set-Ups (Wiley Trading)
by Ed Ponsi
Amazon Price: $44.10
Customer Review: This is an excellent guide on how to trade forex. It's an easy read, very funny in parts and contains a lot of good information that I haven't seen elsewhere. The author uses examples of trades to teach the reader his trading techniques in a very specific manner. This is a welcome change from most trading books on the market, which tend to offer ge...
 
7 Winning Strategies for Trading Forex: Real and Actionable Techniques for Pr...
by Grace Cheng
Amazon Price: $23.10
Customer Review: I give this book a 5 for easy to read, and covers basic stuff such as trendlines and breakout, if you traded stocks then you know much about this. However, it offfers some insights into what moves the currency market.
 
The Quarters Theory: The Revolutionary New Foreign Currencies Trading Method ...
by Ilian Yotov
Amazon Price: $53.55
Customer Review: Ilian Yotov's Quarters Theory is an indispensible roadmap for successfully navigating the seemingly erratic moves and random chaos of the foreign exchange currency market. The Quarters Theory is an unmatched trading methodology that is literally unavailable anywhere else.

Ilian's years of expertise and insight has resulted in a guideb...
 
forex trader - Google News

Citi Snags Ex-Goldman Trader For Japan Forex Role - Memo - Wall Street Journal
29 Jul 2010 at 6:05am

Citi Snags Ex-Goldman Trader For Japan Forex Role - Memo
Wall Street Journal
Jo Narita has joined the bank after eight years at Goldman Sachs in Japan, according to the memo, which described him as "one of the preeminent traders in ...

and more »

 
Citigroup (NYSE:C) Nabs Former Goldman (NYSE:GS) Forex Trader - Commodity Sur...
30 Jul 2010 at 8:34am

Commodity Surge (blog)

Citigroup (NYSE:C) Nabs Former Goldman (NYSE:GS) Forex Trader
Commodity Surge (blog)
Citigroup (NYSE:C), in an internal email to employees, told them they hired former Goldman Sachs (NYSE:GS) forex trader - Jo Narita. ...

and more »

 
FOREX-Euro dips vs yen on Japan exporter selling - Reuters
29 Jul 2010 at 12:55am

Moneycontrol.com

FOREX-Euro dips vs yen on Japan exporter selling
Reuters
... a day after data showed inflation has cooled in Australia," said Hideki Amikura, deputy general manager of forex trading at Nomura Trust and Banking. ...
FOREX: The US dollar is trading with a mixed bias inAutomated Trader
WORLD FOREX: Euro Up On Stock Gains; Long-Term Down...

 


Learn Forex Trading Online

Forex Trading Currencies

International Currency Codes

The Mechanics Of The Forex Narket

A Simple Forex Quote

The Forex PIP

Forex Mini Account

Forex Articles



Copyright © 2007-2010 Learning Forex Trading Online - All Rights Reserved