Geographical dispersion is a characteristic of Forex, as there is no clearing house that centralizes most of the transactions, and there is very little regulation between countries, despite the existence of regulations within each country where it is operated.
Thus, there is not a single quotation, but a set of different quotations, depending on the bank or market maker. However, the rates are very approximate, due to the risk of arbitrage opportunities.
Forex is an acronym for Foreign Exchange. It is a decentralized over-the-counter market, intended for foreign exchange shares. It is the largest market in the world, as far as money is concerned: more than 4 trillion dollars daily.
Thus, it includes exchanges between large banks, central banks, multinational corporations, governments, currency speculators, as well as several other markets and financial institutions. However, small investors or retail traders (individuals) are tiny, participating only, indirectly, through banks or brokers.
This foreign currency market exists wherever one currency is traded, in relation to another. It is, therefore, the largest world market in relation to the amount of money traded.
The Forex market is a unique market due to its geographic dispersion, among other factors, such as the large number and variety of traders in the market, its turnover, the liquidity of the market, the large and extended 24-hour opening hours for day, with the exception of the weekend, as well as the delicate balance of the most disparate factors that affect currency quotes, worldwide.
Forex, this foreign currency market worldwide, offers the advantage of being able to trade 24 hours a day. This flexibility allows trading outside working hours and local holidays, that is, the investor can respond quickly, even though there are different exchange rates and market conditions. Forex Investment News are essential indicators of the performance of the economy of a given country and require an interpretation of the imminent movement in rates and the performance of currencies.
In this global network of central banks, financial institutions, companies and individual traders involved in the purchase and sale of national currencies, open 24 hours a day, 5 days a week from all financial centers in the world, there is an opening in Wellington (New Zealand) ) and negotiated for New York through Sydney, Tokyo, Hong Kong and London.