Latest Articles

FOREX Trading - The Secret to Making Profits from the Big Moves
In FOREX trading, it’s a fact that many traders simply can’t let their profits run - they enter trades correctly, but only ever, bank marginal profits. “Let your profits run” is accepted market wisdom - but how do you do it in practice? How do you...

How To Read Currency Quotes When Forex Trading
Because of the immense volume of the Forex market, it is impossible for a single market’s force to noticeably control the market direction for any considerable length of time. At the end, market forces will prevail in the long run, making forex one...

Start Making Serious Money In The Forex Market This Year
The forex market is the largest in the world. About $1.5 Trillion dollars flow through it daily. Finally, the forex is open to all of us. For decades only banks, investment firms and super-wealthy individuals had access to the forex. ...

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.

About the Author
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.

Written By: Eddie Tobey




Investment Markets

FOREX-Dollar, yen gain as economy worries grow
Reuters - 6 hours ago
By Steven C. Johnson NEW YORK, Nov 20 (Reuters) - The dollar and yen rose against the euro and other currencies from countries with high interest rates as ...
Forex Markets: A Look Into The Dollar Part I istockAnalyst.com (press release)
Australia Intervenes in Forex Market, Spends Record 3 Billion to ... Daily FX
Dukascopy Daily Forex Overview Forex Hound
International Business Times - Bloomberg
all 275 news articles

FOREX-US dollar sinks vs yen, rises vs euro as stocks swoon
Reuters - 1 hour ago
By Gertrude Chavez-Dreyfuss NEW YORK, Nov 20 (Reuters) - The US dollar slumped versus the yen on Thursday, squeezed by Wall Street's plunge as fears of a ...

FOREX-Yen advances vs dollar, euro, stocks eyed for direction
Reuters - Nov 19, 2008
By Steven C. Johnson NEW YORK, Nov 19 (Reuters) - The dollar fell against the euro and sterling on Wednesday as US stocks stabilized and big buy orders for ...
FOREX-Dollar briefly pares losses vs yen after data Reuters
all 13 news articles

Reuters South Africa

FOREX-Recession fear sweeps yen up; high-yielders fall
Reuters - 11 hours ago
The dollar was down half a percent at 95.45 yen , while the higher-yielding Australian dollar tumbled roughly 2 percent to 59.76 yen . ...
HK shares steady but telco services firms outperform Forbes
FOREX-Auto-driven economic, stock worries lift yen, dlr Reuters
all 2,506 news articles

Euro Forecast to Decline Further Against US Dollar on Forex ...
Daily FX, NY - 5 hours ago
EURUSD – Currency trading crowds have recently bought the Euro against the US Dollar, and we forecast that the sudden shift in sentiment may bring Euro ...

Forex Interplay: Dancing Around the Dollar
Seeking Alpha, NY - 1 hour ago
By this author: The euro moved higher vis-à-vis the US dollar today (Thursday) as the single currency tested offers around the US$ 1.2585 level and was ...

FOREX-Dollar rises vs yen, US stocks dictate direction
Reuters - Nov 18, 2008
By Gertrude Chavez-Dreyfuss NEW YORK, Nov 18 (Reuters) - The dollar climbed versus the yen on Tuesday, boosted by a steady performance in the US stock ...
FOREX-Rebounding US stocks lift dollar vs yen Reuters
all 13 news articles

FOREX-US dollar slips against yen, up versus euro
Reuters UK, UK - Nov 19, 2008
By Gertrude Chavez-Dreyfuss NEW YORK, Nov 19 (Reuters) - The US dollar slipped versus the yen on Wednesday, as worries grew about the ailing US auto ...

International Business Times

Forex - Dollar keeps rising on global economy worries
Forex Hound, NY - Nov 19, 2008
As forex specialist, ACM provides only currency and precious metals trading via highly professional forex trading software. All customers are aware that ...
Dollar keeps rising on global economy worries International Business Times
all 4 news articles

FOREX-Yen broadly supported by economic fears
Reuters - Nov 19, 2008
By Naomi Tajitsu LONDON, Nov 19 (Reuters) - The yen strengthened broadly while the dollar steadied on Wednesday as deepening unease about the world economy ...

Google
Sign up for PayPal and start accepting credit card payments instantly.