Who are the market makers in Forex trading?


Have you ever wondered how you can buy or sell currency pairs in the forex at any time? Forex – a market that trades around the clock for 5 days a week. Despite the fact that this is a global event, the probability of finding a trader is willing to make a trade currency pairs at our option at any time is very small. Yet in FX each transaction is completed in a matter of seconds. This is due to the functioning of the forex manufacturers.

Market-maker – a mediator, whose task – to create a virtual market for the trader. At a time when we place an order to buy / sell, market maker trades in, regardless of their own loss or profit. On the Forex market maker is a list of investment banks, central banks, commercial banks and large brokerage firms. These agencies are always ready with a fixed supply and price. Marketing services market offers in the market, and in the fall.

As a manufacturer of market profits?

In the world there is nothing like a free service. Marketers have to get something out of the benefits they provide. They make money:

  1. Buying securities at a price lower than the selling price.
  2. Sale of securities at a higher price than the purchase price.

Thus, in short, we can say that the market makers earn money by using the difference between prices and supply. This spread to the proposal / offer depends on market liquidity and transaction size.

Why do we need market makers in the Forex market?

Marketing the forex market ensures that the marketplace is always functional. They are constantly updating the distribution of their bids / offers (twice per minute) in accordance with updates on the market. This helps on two fronts. First, the trader gets a clear idea about the market for decision making. Secondly, it provides market liquidity and efficiency of the currency pairs. It is this form of marketing solutions provided 24-hour forex trading system.

C & # 39; advent of the currency market producers, players such as large multinational companies and registered money brokers, began to record horns with the likes of the largest investment banks in the field of forex trading. Some of the most famous producers of the forex market – CMS Forex, Forex Capital Markets, and capital gains. All of them are governed by and controlled by the US Commission on Trade in Goods.