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Forex market is a currency interbank off-exchange market, which has no any uniform center and all system of trade on it depends on daily activity of the decentralized network of big banks. There is no any uniform center of the quotations; all quotations of currencies in Forex market follow from quotations of the large banks-participants entering into financial pools (associations), which are usually adhered to large news agencies. Every instant between the states there is a currency exchange, which quotations are influenced by macroeconomic indicators of the states and economic news, and on all tools are established quotations in a pool. On each pool the best is selected on tools «bid» and the best «ask» among all its members. And, participants of one pool instantly on screens of monitors see quotations of other pools; there is a mutual influence of one quotation on others. All small banks receive quotations at large agencies, which, in turn reduce together the quotations offered by big banks. As a result it turns out so – big banks give to small banks limits of open positions in different currencies, and those already distribute them between clients (intermediaries) in compliance with their demands. To all participants of the market modern telecommunication systems allow to receive trustworthy information about quotations of currencies and about economic news from the different countries, and deliver it on satellite communication channels within several seconds. The information with quotations from banks instantly passes on networks of news agencies and reaches through intermediaries to the consumer (and does not reach through dishonest intermediaries). Speed of change of quotations can be such that while you read this article, quotations on any tool can change more than ten times. News agencies give the information on quotations of currencies and, at the same time, release of economic news promotes change of these quotations. The Central Banks of the different countries in Forex market carry out the participation in trade through intermediary of large commercial banks.
The most popular and authoritative agency is the Reuters agency, which does not have for today equal on volume and speeds of passage of the financial information (it was organized in 1851). It is a lot of banks and agencies, so the Reuters agency pool consists of several thousand big banks, but is more many independent from Reuters pools of other agencies (Dow Jones, CQG, Bloomberg, etc.) and it is very positive factor. In the USA the most popular agency and pool Dow Jones, therefore financial arrangement of several big banks it is rather complicated, though there is a possibility to carry out necessary to them policy, coordinated with the governments of the large countries (as a result of lobbying).
If you are going to start work on Forex market, you should learn all details of its work at first and then you will be able to get success.
Before you make up your mind to make a forex investment or start forex trading yourself, better find a nice forex book and read more about the currency exchange market – this will save you from lots of troubles and traps.
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