> > Central Forex Trading Locations |
Central Forex Trading Locations
We have stock markets where people dealing in stock come together to trade their stocks but Forex trading is considered ‘inter-bank’ or (OTC) over the counter market. It is called so because the trading is not restricted to any location or exchange. Those who wish to deal in forex, i.e. the individuals, banks, private investors and corporations; they all conduct their dealings over the counter.
Interaction
Two people communicate privately and trade via any medium. The term ‘inter bank’ came into being because earlier banks like commercial banks, central banks and investment banks dominated the forex trade market. But the modern day list includes large multinational corporations, global money managers, international money brokers, private speculators, registered dealers and future traders. Earlier only large institutions or banks were involved in and small amounts were not traded. But with the arrival of the satellite based electronic media, even small investors and financial firms have joined the fray.
Timing
Forex trading takes place 24 hours a day, between two interested parties. It may be done even over the telephone or electronically. Hence there is no central location or exchange.
Since unlike other financial markets the forex market has no place as such, it doesn’t even have any central exchange for its transactions. The currency trading is done in all the financial centers spread all over the globe. However New York, Tokyo and London create a cohesive market at an international level. Each day, the trading begins at Sydney and slowly spreads all over the world. The financial centers are all over the world, starting from Tokyo, then reaching London and last of all New York. They open up gradually and trading also takes place in that order. The volume and the spreading out of the dealers make it nearly impossible for the government to have any control over the flow of the market.
For more infomation on Forex choose from the list below. |
|
|
|
|
|
|
|
|
|
|
|
|
Banking - Business Finances - Economics - Insurance - Investing
Major Purchases - Personal Finances - Stock Market - Taxes
|
