Have you ever thought about how you can buy or sell forex pairs at any given time? Forex is a market that trades non stop for 5 business days a week. Although it is a global event, the likelihood of finding a trader willing to make the currency pair of our choice at any given moment is very low. And yet, every single currency trade ends in seconds. This is due to the functioning of foreign exchange market producers.
Market Marketing is an intermediary whose job is to create a virtual marketplace for the merchant. As soon as we place a buy / sell order, the market maker makes the trade, regardless of his own loss or profit. On the forex, the list of market producers includes investment banks, central banks, commercial banks and large intermediary companies. These institutions are always ready with a fixed offer and a request price. The market maker offers services in both rising and falling market scenarios.
How does a marker make a profit?
There is nothing like a free service in the world. Marketing vendors need to get something from the facilities they provide. They make money through:
- Buying securities at a price lower than its selling price.
- Sale of securities at a higher price than the purchase price.
In this way, in short, we can say that market makers make money by taking advantage of the difference between supply and bid prices. The spread of this offer / offer depends on the market's liquidity and the size of the transaction.
Why Do We Need Forex Market Producers?
Forex marketers ensure that the trading floor is always functional. They are constantly updating their bid / bid spread (twice a minute) in line with market updates. This helps on two fronts. First, the trader gets an accurate picture of the decision-making market. Secondly, it guarantees market liquidity and currency pair efficiency. It is this form of marketing solution that has provided the 24-hour forex trading system.
With the advent of currency market makers, players such as large multinationals and registered money brokers began to lock horns with the likes of major investment banks in the area of currency trading. Some of the most famous producers in the forex markets are CMS Forex, Forex Capital Markets and Profit. All are regulated and managed by the US Commodity Futures Trading Commission.