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Forex markets

Before we can even begin to make sense of all the different types of $orex brokersd why they treat their clients in the way the do, we first need to understand how the $orex marketks, and why it is that these abuses continue, despite attempts by the various regulatory bodies to reign in on some of the excesses of the industry. In simple terms of course, there is one word that defines the forex market and it is this – decentralised – the opposite of centralized, where markets in options, futures, commodities and equities, are regulated by a central exchange, which is not only responsible for matching buyers and sellers in the market, but also standing as guarantor behind the products and instruments being traded. This centralised aspect ensures an orderly market, where prices are transparent, and one which ensures an even playing field, even for small retail traders such as ourselves. We may of course still lose money, but at least we are competing on equal terms, and any losses, which we all accept from time to time, are due to our own trading decisions, and there is no one else to blame.

In the forex market it is very, very, different, and is due to the fact that the forex markets are unregulated and decentralised, with trading largely conducted in secrecy, well away from the glare of regulation, control or transparency. And the catalyst for all this secrecy and chicanery, is – money! Truckloads of the stuff every day, and with the forex market now the largest in the world, an ever increasing number of participants are attracted in, lured by the vast amounts of easy money to be made, in a market that is conducted in secrecy by a handful of market insiders. Indeed the forex market of today has much in common with the early years of share trading in the 18th and 19th century, when shady business transactions took place in the coffee houses of the time, with double crossing and insider dealing the standard practices of the day. If you have read so far, and are becoming alarmed, then you should be – perhaps having read the above you think I am being deliberately provocative – I am not – this is the real world of $orex tradingd if you are to survive, and become one of the 10% that lasts longer than a few weeks, then you need to understand the forex markets in detail, and the motivation of all the market players, well before you open your forex trading demo account.

So let’s look in detail at the major players in the forex market, and how the currency prices that you are likely to see on your forex trading platform actually arrive on the trading screen, and more importantly, what lies behind them waiting to catch the unwary.