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This site is currently inactive as I have decided to move away from exclusively trading Forex in 2010 and as such will not be taking on new coaching clients in this area.

 



I have resumed my focus on coaching as a stock market mentor where I run a success guaranteed stock trading mentorship program

 



Additionally, you can now get access to what I consider to be the best stock options daily trade alert service.

 



Of course, I am biased and with a success rate fluctuating between 68.2% and 72.4% it is hard not to be biased.

 



If you do want to follow along with what I am doing every day you can get access to my daily stock market report 

 

 

You can read the step-by-step Bollinger Band Trading Strategy Guide - this is my main active trading strategy



Until next time


happy trading 


Mr Phil Newton or on LinkedIn Phil Newton trader

market makers

macman's picture

Hi

 I have been doing some reading but am afraid I still don't really understand the way the foreign exchange market works.  Can someone please clarify for me?

 What I think I understand is that:

There is no central exchange.  So, trading goes on in lots of different ways.  The way that the private trader gets involved is by going through a broker.  Now, I am not sure how price actually gets set without an exchange.  It would be great if someone could answer that. 

So, when we go through a broker, unlike with equities, our order is not getting placed on the market.  This is where I get really hazy.  Who is buying or selling the corresponding trade to ours? 

 Now, with the spread, one would think that this is however many pips each side of the price.  However, from my reading, it seems that the brokers are generally market makers and are profiting from our choices. 

I don't even really know how to ask the question but I hope someone can help explain.  The real thing I want, beside understanding is to know what to look for in a broker.