FOREX or FX TRADING CHARACTERISTICS

There is no unified or centrally cleared market for the majority of FX trades, and there is very little cross-border regulation. Due to the over-the-counter (OTC) nature of currency markets, there are rather a number of interconnected marketplaces, where different currency instruments are traded. This implies that there is not a single dollar rate but rather a number of different rates (prices), depending on what bank or market maker is trading. In practice the rates are often very close, otherwise they could be exploited by arbitrageurs instantaneously. A joint venture of the Chicago Merchantile Exchange and Reuters, called FXMarketSpace opened in 2007 and aspires to the role of a central market clearing mechanism.
The main trading centers are in London,New York, Tokyo and Singapore, but banks throughout the world participate. Currency trading happens continuously throughout the day; as the Asian trading session ends, the European session begins, followed by the US session and then back to the Asian session, excluding weekends.
There is little or no inside information in the foreign exchange markets. Exchange rate fluctuations are usually caused by actual monetary flows as well as by expectations of changes in monetary flows caused by changes in GDP growth, inflation, interest rates, budget and trade deficts or surpluses, large cross-border M&A deals and other macroeconomic conditions. Major news is released publicly, often on scheduled dates, so many people have access to the same news at the same time. However, the large banks have an important advantage; they can see their customers' order flow.
As Forex trading occurs on a global scale Forex day trading rarely closes for business, overlaps and time differences mean the market closes for a brief period on Sunday. With a range of services and tailor-made packages available to suit every individual investor needs it’s not difficult to understand the appeal of FX trading.The best Forex trading system is employed to ensure traders can get the most out of the Forex trading hours, one of the major advantages offered by the Forex trading platforms is the flexibility allowed to develop unique individual trading accounts.