Forex Trading Money » market participants http://virtualmakemoney.com Forex Trading Money Tutorial Sun, 20 Nov 2011 12:58:39 +0000 en hourly 1 http://wordpress.org/?v=3.2.1 FX Central Clearing is Always on Your Side http://virtualmakemoney.com/fx-central-clearing-is-always-on-your-side.html http://virtualmakemoney.com/fx-central-clearing-is-always-on-your-side.html#comments Mon, 11 Jul 2011 23:33:16 +0000 randi http://virtualmakemoney.com/?p=824 Trading foreign exchange (forex) is a one alternative way for people in making money. They compete to run their forex trading so that they get as much money. Surely in trading forex, there are some supports like from forex broker or bank. The forex broker is important in managing and giving advice for the traders. Then, there is FX Central Clearing as a forex broker which offers advice and help for them especially for the beginners. FXCC was founded in 2010 by a group of foreign exchange market professionals. It builds on their long experience in the financial markets. FXCC’s goal is simple that it wants to be the world’s favorite forex broker. In fact, that is a lofty ambition but it is one prepared to work hard to achieve.

Actually its success comes from the success of the clients. The more profitable the clients are in their forex trading, the more trades they place in the FXCC system. As an ECN broker, its profits are generated on a fixed per-trade basis. The more trades you place in its system, the healthier its bottom line looks. Then, the best interest is for the traders to be successful. This forex broker is authorized and regulated by the Cyprus Securities and Exchange Commission (CySec). FXCC operates under the EU Markets in Financial Instruments Directive (MiFID).

Moreover, FXCC is on the FSA Register (Reference Number 549790) and EEA Authorised. Its ECN forex model provides professionals and active traders, hedge fund managers, corporate clients and banks with access to real time streaming and competitive prices directly from leading multibank liquidity providers. Its success comes first and foremost from the success of its clients. It has the extremely fast trade execution, the tightest possible spreads and sophisticated trading platforms. Those mean the clients have all the tools they need to give them the best possible chance of success.

FXCC also believes that the ECN forex model benefits all foreign exchange market participants. The ECN/STP model gives all clients the freedom to trade on a more level playing field. It has also made the world of forex more transparent with a greater degree of control for the traders. Unlike most Forex brokers, there is No Dealing Desk in FXCC. The business model is based on utilizing Straight Through Processing (STP), where all client’s orders are sent to various premier and leading forex banks and qualified financial institutions, eliminating the potential for any price mark-up, or any conflict of interests as FXCC does not take the other side of your trades. Dealing Desk forex brokers under certain circumstances can profit from your losses. When those particular circumstances start to appear, that is when things like lags and re-quotes start to rear their head.

Here it does not re-quote because it does not need to. As it does not run a dealing desk, so there is no trade risk for FXCC to manage. That means it never come into conflict with its client’s trades. Client trades are made on prices provided to FXCC by the pool of liquidity providers. Its Price Aggregator automatically scans these so you are assured of only ever getting the best available Bid/Ask price combinations. At FXCC you will see the best prices and liquidity providers see the FXCC system. It has got a way to go yet, but the goal is already in sight which is to be the world’s favorite forex broker.

Incoming Forex terms:

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]]> http://virtualmakemoney.com/fx-central-clearing-is-always-on-your-side.html/feed 0 Let’s Consider the Main FX Participants http://virtualmakemoney.com/let%e2%80%99s-consider-the-main-fx-participants.html http://virtualmakemoney.com/let%e2%80%99s-consider-the-main-fx-participants.html#comments Wed, 08 Jul 2009 21:46:22 +0000 admin http://virtualmakemoney.com/?p=103 Commercial banks
They execute the main volume of currency operations. Other market participants hold their accounts in banks and make necessary conversional, depositary and credit transactions on them. Banks cumulate (through operations with clients) market requirements of currency conversions and funds attraction/depositing and refer with them to other banks. Besides filling clients’ requests banks can make transactions independently at own their expenses.

Finally, Forex represents a market of interbank transactions, and under currency and interest rates fluctuations we should consider interbank foreign exchange market.

Large international banks, daily operation volumes of which reach 1 bln dollars, have the most important impact on the world exchange markets. These are such banks as Deutsche Bank, Barclays Bank, Union Bank of Switzerland, Citibank, Chase Manhattan Bank, Standard Chartered Bank and others. Large transaction volumes that may cause significant changes in quotations or currency prize are the most evident distinction of these banks. Large players are usually divided into bulls and bears. Bulls are the market participants who play for the currency prize increasing; bears are the market participants who play for the currency prize decreasing. The market is usually in balance between bulls and bears, and the difference in currency quotations usually fluctuates in quite a narrow range. Although when bulls or bears overpower, currency rates quotations fluctuate quite sharply and significantly.

Firms that realize foreign trade operations
Companies that take part in the international trading have a great demand on the foreign currency (with regard to importers) and offer of the foreign currency (with regard to exporters), and also deposit and attract free currency remains. As a rule, these organizations have no direct access to Forex and make conversional and deposit transactions via commercial banks.

Companies that realize depositing of foreign assets (Investment Funds, Money Market Funds, International Corporations)
These companies represent different international investment funds. They realize policy of diversifying management of assets portfolio, depositing funds in securities of governments and corporations of different countries. They are called just funds in slang of dealers. The most popular funds are «Quantum» of George Soros and Dean Witter.
Large international corporations also refer to this kind of firms. They realize foreign industrial investments: affiliates and joint enterprises foundation, such as Xerox, Nestle, General Motors, British Petroleum, etc.

Central banks
Currency regulation on the foreign market is the main duty of the central banks, particularly, prevention from national currency sharp bounces in order to avoid economical crises, support balance between exports and imports etc. Central banks have a direct influence on Forex. Their influence may be both: direct – currency intervention, and indirect – money funds and interest rates regulating. They can’t be referred to bulls or bears, as they may play both for rising and falling depending on concrete tasks they have currently. Central banks may act alone on the market to influence on the national currency, or they may act together with the other central banks to conduct the collective currency policy on the international market or for collective interventions.

The following banks have the greatest influence on the world currency market: the US Central bank — US Federal Reserve (FED), German Central bank — Deutsche Bundesbank and GB Central bank — Bank of England (Old Lady).

Foreign exchanges
In some countries with transition economy currency markets operate. They realize currency exchange for entities and formation of the market currency rate. The State usually regulates the exchange rate, making use of currency markets compactness.

Currency brokerage firms
Their function is to bring together a buyer and a seller of the foreign currency and to accomplish conversional or loan-depositary operation between them. Broker firms take broker commission in the form of percent from the transaction charge.

Physical bodies
Physical bodies make a great deal of noncommercial transactions as related to traveling abroad, wages, pension and earned income transfer, foreign exchange cash buying and selling. In 1986 due to margin introduction physical bodies got an opportunity to invest free cash on Forex to take profit.

The main volume (90-95%) on Forex is earned by the largest world commercial banks by making conversional transactions both in clients interests and by their own expense. Nevertheless, advance in computer technologies let to find field of application for funds of private and retail investors. More and more brokerage firms and banks give access for private investors to Forex via Internet.

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