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There are various types of the exchange systems that are available in the forex market and form the intermediary through which trading can be performed. The various types of exchange system include the trading through brokers, direct dealing and the matching system. Each of these exchange system has their own significance which make them really suitable for the situation at which they are chosen. Forex information can provide you with currency information regarding the various exchange systems that exist in the market for taking appropriate trading decisions and gain profit through trading.
Brokers and Forex News
The brokers are the ones who provide services to banks and they do not hold positions like the brokers in the currency market. The major duties of brokers are to bring the sellers as well as buyers together for sales, optimize the prices shown to customers and also to execute teh orders of the traders accurately, faithfully and quickly. Most of the brokers perform their task through dedicated phone lines. The brokers have a greater role in making the trades possible by providing information to its clients. The brokers need to be updated about the forex news so that they can inform their clients about the various fluctuations that may occur in the market. The brokers usually get paid with a commission by both the seller as well as buyer in case of the occurrence of a trade. The fees of the brokers are decided individually between the traders and the brokers. The brokers provide an opportunity for its clients to view the prices that are made by customers in two way that are the bid as well as offer and also offer the customers with a one way price that is either a bid or an offer of its other clients. The difference in the prices shown by traders is due to the variations in their expectations as well as interests. The brokers should show the lowest offer and highest bid. The trader can test the trend that exists in the market by placing a bid which is of smaller value so that any reactions that occur in the market can be identified.
Direct dealing can be considered as the exchange rate that is truly based on the reciprocity that has aroused in the trading of the currency. Direct dealing can be provided with much more restrictions compared to broker’s agency. The main problem associated with direct dealing is that as these trades mostly occur through phone and due to which it is very difficult to identify the occurrence of any kind of risks.
Matching system comprises of the facility to identify the pair by making use of one to one approach. In other types of exchange systems it is anonymous with whom the trading is performed. The matching system do not comprises of any individuals to tell about the prices as well as liquidity that exist in the market.
Dealing system comprises of various computers that are linked with banks. Dealing systems get the information from the forex news and this system is fast, secure and reliable compared to other exchange systems.
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