Intermediary in trading global currency

by Augustus Callen

The global currency trading market is up. There is extraordinary growth. At the end of 2012, global daily trading in foreign currencies rose to USD 4.7 trillion. This is more than 12 times the average turnover of the global equity market. There is a trend in volume drop in other asset classes such as stocks and bonds for the past two years. Currency trade recorded strong growth in 2011. However, in the third quarter of 2012 it showed a decline. In the last quarter of 2012, the global currency trading made a strong comeback to end the year almost equivalent to 2011. The global currency has now been widely accepted as a legitimate asset class. UBS AG estimates that every day all currency trade will reach USD 10 trillion by 2020.

FOREX currency is an intermediary LED market. Top participants in the global currency market are commercial and investment banks, hedging funds, central banks, corporate players, traders and speculators. Trading important currency is the old phenomenon. For 100 years until the 1970s the fate of most currencies was bound to gold. Speculation of the global currency in the open market began in the late 1970s. In today’s market, trade in foreign currencies by speculators usually takes place through a dealer, which provides trading platforms to transact. Such trading occurs in currency pairs, such as USD / EUR (US dollar / Euro). Trading global currency always involves a currency pair. One sale and others are bought.

Intermediaries have an important role to play in the best currency market. They are agents that facilitate trade between dealers and individuals. But the intermediary itself does not play a role in trade. They have a network of communication channels with all stakeholders. This real time communication helps intermediaries to online with market movements and sentiments. At the end of the intermediary collect commissions. The appearance of the internet has had an impact on the global currency market. Different partners in the currency trading chain are now open to evaluated for their services. There are many online forums available now to give customers enough input to make the right choice. It is important to understand that the currency market is a market that is at risk with the opportunities for great profits and losses. Most participants will carry out the right thorough test before choosing an intermediary. There are enough choices available for them now. Smart intermediaries believe in a win-win relationship with their clients.

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