Did you know that the Forex market happens to be the most liquid and lucrative financial market on the planet at the moment? That trillions of transactions are happening every day? Sounds amazing.
Forex trading excludes any central location. Instead, it’s conducted between many participants by phone and electronic communication networks known as the “ECNs” in numerous markets worldwide.
The Forex market is available to its clients 24 hours a day, from 5 p.m. EST on Sunday until 4 p.m. EST on Friday. Anytime in the world, there is at least one open market and a few hours between closing one market and opening another one.
Currency trading international scope means that at the same time in the world, there are always traders who are making demands for a specific currency. It’s essential to know that the Forex market comprises commercial banks, investment management firms, banks, hedge funds, investors, and retail forex brokers.
Let’s see the leading role of a Forex broker in the FX market, shall we?
The role of a Forex broker in the market
In order to understand the Forex market entirely, it’s essential to get to know the true importance of a Forex broker. As you’ve probably already heard before, brokers are financial services or companies that provide traders access to trading platforms.
Since there are many fraudulent and suspicious brokerage firms on the internet, it’s crucial to pick the right one for your trading business. One of the most relevant examples of a good and reliable broker can be seen in the LBLV review update from 2021. In this review, you can see
the core elements of a high-quality Forex broker that any trader should be aware of.
What does the Forex market consist of?
The most lucrative financial market on the planet, the Forex market, comprises two levels. The first level is the interbank market, and the second one is the over-the-counter market or the OTC market.
When it comes to the interbank market, it’s essential to understand that the market is where larger banks trade currencies in order for balance sheet adjustments, hedging, etc. On the other hand, the over-the-counter market (OCT) is where people trade through Forex brokers and online platforms.
The 24-hours available market
What makes this market different and unique compared to others on the internet is that it is 24-hours available to its clients. It means that a trader can trade currencies whenever he feels like it, which gives it so much flexibility.
Every Monday morning in Asia to Friday in New York, the Forex market is open and available for trading, which means that it doesn’t close overnight. Therefore many traders who are also doing a day-time job can organize their trading schedule whenever they want.
The Bottom Line
Here is what you need to remember from this article:
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The Forex market is decentralized and the largest financial market in the world.
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It is available 24 hours a day, 5.5 days a week.
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This market consists of commercial banks, investment management firms, hedge funds, investors, and retail forex brokers.