A Look at Forex Market Makers

The 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.

---

Creativity in Trading

"Is it important to be creative in your trading?"I'm not... Read More

Forex Trading Online - 7 Reasons Why You Should!

Forex trading online is a fast way to use your... Read More

The Secret of Reduced Margin Spreads

One of the best kept secrets in trading is that... Read More

An Evaluation of the Devaluation

A Minister of Finance is morally right to lie about... Read More

Online Stock Trading: Freedom of Trade

I remember the first time I started to trade online.... Read More

How to Trade Currency

We all know when you go on a trip to... Read More

What I Learnt Losing £60,000 My First Year as a Full-time Trader

During my first year as a local (independent trader) on... Read More

Risk and Stock Trading Fees: The Two Barriers To Overcome If You Want A Successful Trading Career.

You know the old joke:"How do you make a million... Read More

How To Control Fear And Greed In Trading

There is an old saying that the market is driven... Read More

A Short Introduction To FOREX

FOREX is the world's largest and most liquid trading market.... Read More

Be a Smarter FOREX Currency Trader: Three Basic Principles

Below I will describe three basic principles that may come... Read More

FOREX Trading Philosophy

Keen on starting FOREX trading? Why would you not be?... Read More

A Beginner?s Guide to FOREX

FOREX is the abbreviation for the Foreign Exchange market. FOREX... Read More

Money Management, Part 2

FEARING LOSSESThere is a huge difference between being risk averse... Read More

Experience

Throughout our course on futures trading, we have tried to... Read More

Forex Scams: How to Spot Them A Mile Away

In recent years, investors have witnessed increased number of investment... Read More

The Margin Advantages of Trading FOREX.

There is one aspect that is considered as one of... Read More

Crisis of Confidence in the EU

The European Union (EU) constitution was dealt a double blow,... Read More

Forex Broker

A broker is any person or firm that charges a... Read More

Getting a Forex Trading Education

Many Americans are interested in getting involved in forex trading.... Read More

Money Management, Part 1

There are some common mistakes I've seen traders make in... Read More

Day Trading Training ... You need more than just going to a free stock market workshop to learn

Day trading is all about making buy and sell decisions.... Read More

FOREX - Where Fortunes Are Made Everyday

The Foreign Exchange Market ? better known as FOREX -... Read More

Forex Made Easy for Everyone

Forex made easy is as simple as you would want... Read More

Commodity Trading - Advantages and Disadvantages

What Is Commodity Trading?Commodity futures markets allow commercial producers and... Read More

How Currencies are Traded in the FOREX Market

Currencies are traded in dollar amounts called "lots". At 100:1... Read More

The Seven Most Traded Currencies in FOREX.

Currencies are traded in dollar amounts called "lots". One lot... Read More

Chinas New Currency Regime

The base unit for the renminbi is the yuan, which... Read More

Sending Signals for Trading in Forex

Forex signals are sent by a forex firm to their... Read More

A Look at Online Forex Brokers

An online forex broker is a firm that facilitates retail... Read More

Business and the Forex

The business world is a complex web of supply and... Read More

The Yin and the Yang of Markets

I am reading a fantastic book on trading, first published... Read More

Adaptation to the Realities of the Market

Do you think adaptation to the realities of the market... Read More