Is there a central location for the Forex Market?



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Is there a central location for the Forex Market?
I’m wondering is there a central location for the Forex Market?

Best answer:

Answer by AlKar
Forex trading is not managed through an exchange. Since transactions are conducted between two counterparts, the FX market is an “inter-bank,” or over the counter (OTC) market.

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1 Comments


  1. FXLIVEDAYTRADING (November 9th, 2013 at 2:22 am)

    Hello,

    Forex Trading or ‘Spot Forex’ takes place with no central exchange. A market is made via interbanks these are Banks are providing bids and asks depending upon the liquidity of the marketplace. So far, Banks have done a good job as this free markets has no commissions unlike Stocks and Futures that charge a commission based on their respective exchanges. When I worked on Wall Street as a Trader our Nasdaq firm would often make a market in a stock and we would provide liquidity by going often in the opposite direction of a trade looking to make a profit on the exit. So far Futures is one way to also buy currencies as they do trade on an open market but in reality all they are is a way for the exchanges to profit.

    Many argue the recent Dodd Frank bill had no business trying to regulate Forex when in reality Forex has NO central exchange. It appears the U.S. is the only Country to have done so to this degree.

    If you are going to trade Forex trade SPOT FOREX, otherwise you will be paying commissions if you do so via futures.

    Regards,
    BT


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