How the Market Forex?

This article is written for traders, novice market Forex, often trade at this difficult market is not representing his true device.

Market Forex - is off the interbank foreign exchange market, which does not have a single point, and the entire trading system it depends on the daily activities of an arbitrary decentralized network of large banks. No, as such, a single point of quotations, all quotations of currencies in the Forex market are derived from the quotations of major banks, the participants included in the financial pools (association), which are usually tied to the major news agencies. Every moment between states are exchanged, the quotes that affect macroeconomic performance of States and economic news, and all tools are installed inside the pool quotes. For each pool is selected for the best tools «bid» and the best «ask» of all its members. Meanwhile, members of a pool of instantly on the screen see the quotations of other pools, there is mutual influence of some quotations on the other. All the smaller banks are quotes from the major agencies, which in turn bring together the quotations offered by major banks. The result is so - the big banks to small banks to provide limits on open positions in different currencies, and those already distributed them among our clients (agents) in accordance with their applications. All participants in the market of modern telecommunications systems make it possible to obtain reliable information about the quotation and the economic news from around the world, and deliver it to the satellite channels for a few seconds. Information from the quotations of the banks immediately pass on the networks and news agencies comes through intermediaries to the consumer (and through dishonest middlemen do not reach). The rate of change of quotations may be such that, as long as you're reading this article, the quotations on any instrument can be changed more than ten times. News agencies provide information about the quotation, and at the same time, the release of economic news contributed to a change of these quotations. CBR in different countries to participate in trading on the Forex market through the exercise of large commercial banks.


The most popular and authoritative agency - the agency Reuters, which has not to date, equal to the volume and speed of passage of the financial information (organized in 1851). Bankov and many agencies, both Poole agency Reuters is composed of several thousand large banks, but there are still many independent from other agencies Reuters pools (Dow Jones, CQG, Bloomberg, etc.) and this is a very positive factor. So in Europe, the most popular agency Reuters and its pool, and within the U.S. the most popular agency and Poole Dow Jones, a financial conspiracy, therefore, a few large banks is very difficult, although it is possible to carry out the necessary policies they agreed with the governments of major countries (as a result of lobbying).

Real information about Forex market quotations are in the information and dealing systems of different agencies, for example, in 3000 Reuters - subscription for which costs about 10,000 dollars a month. This package of current information on supported by extensive quotations reference database, which contains the history (from 5 to 15 years) the movement of prices on more than 90 thousand shares, 155 thousand and 135 thousand option bonds, and 20 thousand of macroeconomic indicators and price indices from all mira.Est cheap packages - a package with a delay of two minutes worth of $ 1000 to $ 5000 per month.

So, we found that the main actor in the market Forex - a network of major banks operating in the terminal information agencies, and exposes them quotes define the global foreign exchange treatment.

Now consider a trader - an individual who is described at the end of the chain: the big banks - News agencies - medium and small banks - intermediaries (brokers or dealers) - traders, and individuals. All its trade is dependent on honesty of the dealer or broker, they are sovereign to the client hosts. Trader can not influence the real interbank trading in the market Forex, because it has no direct access and the necessary funds, he is forced to trust the mediator. Brokers work honestly, in particular, large foreign brokerage firms that are included in the system of banks, they are forced to value their good name and reputation of the bank. And this is what a trader quoted petty dealers - a very big question: often it is a complete fraud. It happens so that the trader sees the deception with quotes, infinite «slip» failure occurs or money, but try to find the truth, because almost all the dealers hide offshore. That is why the choice of a mediator in the market Forex - it is a matter of financial life and death for a trader.