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Chapter 1, Part IV. FOREX Stats and numbers. - Q&A

Discussion in 'Complete Trading Education- Forex Military School' started by Vcorreia9, Dec 9, 2011.

  1. Vcorreia9

    Vcorreia9 Recruit

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    Looking forward to see your posts again so to the viewers that will also shared their opinions because I really appreciate how you put time in your site it is very well arranged and I love the way how you share your information with us.
     
    SirTopham98 likes this.
  2. fxeasy75

    fxeasy75 Private, 1st Class

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    Hi,

    Just to share with members who are reading that in some countries, there may also be restrictions of how much of one currency can a bank hold. This is to prevent the banks from holding too much of one currency and then flooding/withholding the local markets with that currency to manipulate the rates, as well as to prevent a high revaluation of funds held by banks as currencies are subjected to ex-rates differentiate (as mentioned in previous lessons) . Thus banks are then forced to trade in currencies (mostly to stabilize the local currency ex-rates). Major banks across the globes hire a team of analysts and traders that deal with this aspect and quite a high percentage of the currency trading is with investment objective as well. Its likely that about 5% or even lesser of the amount traded are meant to satisfy the local central bank/governing authority. Major banks are also the major market liquidity providers for most brokerages especially those that offer ECN accounts. They compete to bid for a piece of the pie by taking trades from retail traders (us). Brokerages facilitate such transactions by bringing together these major banks

    Google for any major brokers and read how they get the quotes and I can bet you that they would mention major banks. I don't have a USD1M to lost, neither do most of us. I would have won the bet, hands down!
     
    #2 fxeasy75, Jan 5, 2013
    Last edited: Jan 5, 2013
    VIGLLC, fortune, Saleh1980 and 3 others like this.

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