If you have been reading our blogs frequently, you must be aware by now that forex market is the short form for the foreign exchange market but did you also know that the world’s biggest trade and exchange market has no central location. The foreign currency exchange is of such nature that it is active every time and since there is no central location, there are various channels to make it possible.
Unlike the past, when the foreign exchange was open only to central banks and financially strong institutes, it is now open to everyone willing to do forex trade. This has been possible because of the various trading platforms on the internet. If you are willing to try your hand in the field of forex trading, you should know all the places through which you can access this market. Go through this post and you’ll know about all the areas where the forex market is established.
1. Retail Forex Brokers
The retail brokers are ice breakers for you into the FX trade and they mostly approached by retail traders. The percentage of the whole market covered by them is very less as compared to transactions that happen in the forex market. Although the forex brokers comprise a very small part in the market, they can easily provide 24/7 access to the various platforms for trading to the individual retail traders. They can help you with both the selling and buying of the currencies.
2. Central Banks
A part of the currency exchange market lies with the Central banks also. The central banks have to participate in the buying and selling of currencies which helps them to take control over the supply of money, inflation and the rates of interest. The central banks aim at stabilization of the value of the currency in the market, and for this, the central banks have to frequently use national as well as foreign reserves.
3. Commercial Businesses
All commercial businesses, whether big or small, also comprise a part of the foreign exchange market. It is because the companies have to sometimes sell or buy in a foreign country and such cases, most of the times, the transactions are done in other county’s currency. If a British company has to do trade with a Japanese country, it quite possible that the British company will have to buy the Japanese yen from currency exchange market to pay and complete the deal. To not be affected by fluctuations in the currency rates, many companies often buy the currencies in advance of those countries with which they have regular business tie-ups.
4. Interbank Market
The largest percentage of the foreign exchange market is covered by the interbank market. The banks often help the customers in the transactions that are going to happen in foreign currency. The foreign exchange trade is also done by the banks based on their accounts too. Since all the small and big transactions are carried out by the banks, they cover the major share in the percentage of the Forex market.
The forex trade market is the largest in the world and still, with no particular central location, it also does not have a controlling body. This makes it very tempting to new traders but it is highly advised that if you are stepping into the FX market as a trader you must be aware of the various risks and how to convert them into a benefit.
To be a pro at speculating the FX market, understanding the factors that can affect the rates of currencies, and know basic but very important tricks of the currency market, you have to understand it from the established champions of the forex market.
Hafizzat Rusli, who is not just a pro trader of the forex market but is also a pro mentor of the same subject. He has helped various people around the globe with his classes and if you too want to learn the art of trading efficiently in the forex market then here is your chance to do so. Click this link and get to know more about the trading course offered by Hafizzat Rusli.