No Physical Location
The over-the-counter foreign exchange market has no physical location. Foreign Exchange deals are transacted over telecommunication systems. Market participants in Europe may deal with their counter-parts anywhere in the world.
Trading Hours
The over- the-counter foreign exchange market operates 24 hours around the clock.
The trading day begins in Auckland, New Zealand when traders start business. Then moves to Sydney in a couple of hours. Next Tokyo, Singapore, Hong Kong and other Asian financial centers begin a few hours later. During Tokyo lunch time the early birds from Africa, Middle East and Europe start trading as well. When Asia is finished dealers in Europe become active making trades. North America begins trading during the afternoon hours of Europe. Finally, when North America dealers go home trading in Auckland, New Zealand is getting ready to start.
Clients with Traders Exchange can trade and receive non-stop service starting at 5:00 p.m Est. Time Sunday until 5:00 p.m Est. Time Friday.
Trading never really begins or ends, it just becomes busier or lighter, but in general it follows the sun around the world.
Highly Liquid
With a massive amount of traders around the globe, it is highly liquid. Hundreds of millions can change hands within seconds.
Self-Regulation
Day to day business around the globe of over-the-counter foreign exchange is basically non-regulated. Traders are free to enter and exit the market, trade whenever they want, what amount and whichever currencies they wish. The market is self-disciplined and is a showcase of ethical and professional standards that showcase a financial market can operate efficiently and effectively with minimal supervision and regulation.
However this does not mean that the foreign exchange market is without regulation. In the United States, the NFA and CFTC regulate FCM's and the SEC and the NASD regulate broker/dealers.
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