Tag: market participants

Forex Markets Never Sleeps – Understanding Forex Trading Hours

Trading Articles
It is often said that there is never a dull moment in forex and that the markets barely sleep. This is true considering that forex is traded across different timezones and different markets leaving little to no room for forex trading to calm down. However, you might notice that some hours of the day see a lot more volatility than other parts of the day. Let's take a look at how timezones and different markets play a role in not just currency pairs but also precious metals such as Gold and Silver as well as energies such as Natural Gas and Crude Oil. But first.... Why consider forex trading times? There are many reasons why traders would carefully choose their trading times. From geographic point of view to the currency pairs being traded, let's not forget volatility and liquidity and ...
Who are forex market participants

Who are forex market participants

Trading Articles
Unlike a stock market, the foreign exchange market is divided into levels of access known as forex market participants. At the top is the inter-bank market, which is made up of the largest commercial banks and securities dealers. Within the inter-bank market, spreads, which are the difference between the bid and ask prices, are razor sharp and not known to players outside the inner circle. All these together form the forex market participants. The difference between the bid and ask prices widens (for example from 0-1 pip to 1-2 pips for a currencies such as the EUR) as you go down the levels of access. This is due to volume. If a trader can guarantee large numbers of transactions for large amounts, they can demand a smaller difference between the bid and ask price, which is referred to ...