Is forex market controlled by someone? - page 10
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There are some rules and regulations, but three is no particular individual who is responsible to regulate this market. there are lots of variables works behind the scene in Forex market and that is why the movement of price goes up and down. Such as the condition of world's economy, the condition of world's political environment and most importantly the sentiment of Forex traders play an important role in this market.
I think no one is controlling this market. May be some rules will apply to it but mostly when people trade trend is set automatically. Brokers , central bank and other financial matters involves in it . Allover the world trade is done on same price . Only brokers can tell how they regulate this market.
There is no "central control" of the Forex Market. But if you are working with some pairs, you need to watch what is the policy of the central bank. Now in Japan with the YEN and Swiss with te Swiss Franc. If you don't know for exemple that the BNS won't allow EUR/USD under 1.20 , you miss an important news because you can do a lot of money with it !
But there is no central market and due the huge volume of $$$ sent to the market, it's very difficult to say that someone can control it...after a decision of central bank or a government could have a direct impact on some currencies pair. It's "more" true with little money as exotic one than big one..
Whatever we say here, i believe that Forex market is controlled by the Banks. They are doing probably 80% of all trades; banks can control the demand for certain currency. It is hard to beat. However there is the bitcoin thing right now, but it is still to be developed.
There is no market in the world that is not controlled by somebody by now. See what are they doing with diamonds, gold, platinum, whatever has some worth ...
There is no market in the world that is not controlled by somebody by now. See what are they doing with diamonds, gold, platinum, whatever has some worth ...
Diamonds are controlled and manipulated by one single family
Diamonds are controlled and manipulated by one single family
You mean the Oppenheimers (De Beers)?
Recent news are that they are loosing the monopoly, but I am not so sure about it (nobody will just give up the monopoly)
You mean the Oppenheimers (De Beers)? Recent news are that they are loosing the monopoly, but I am not so sure about it (nobody will just give up the monopoly)
Yes, I meant them
Here is one documentary that is quite interesting
Yes, I meant them
Here is one documentary that is quite interesting
Interesting
Had no idea. Thanks for the video
Banks warned about exchange rate dangers in 2009
Banks knew of unusual currency trading at a key period during the trading day four years before regulators began investigating manipulation of the so-called "London fix".
The 'London Fix' is an important rate set by counting currency trades over a one-minute period at 4pm.
Reports seen by the BBC show how bank analysts had noticed sharp movements in exchange rates.
Banks even warned their clients about trading at that time.
Rate manipulation
Analysts warned trading at 4pm could have a 'debilitating' effect on investments, costing up to 5% annually.
The London fix is widely used by pension funds and other investors to value portfolios and set a price for deals.
Separate rates are calculated for each pair of currencies, such as the Euro and US Dollar, or the Pound and the US Dollar.
The rates hit the headlines in October, when Barclays suspended six traders, and RBS suspended two traders in connection with the regulators' inquiry. Fifteen banks have been contacted about this issue, including Citigroup, Deutsche Bank and UBS. At this time no-one is formally accused of wrongdoing.
The suggestion is that traders colluded to push through high volumes of trades in the run-up to and during the window to influence rates.
'Surprising revelation'
But research by Morgan Stanley and seen by the BBC shows that banks were already concerned about the London fix in 2009 - four years before the investigations were announced.
It noted unusually sharp movements in exchange rates around 4pm, concluding that anyone trading at that time is unlikely to get the best possible deal available that day, increasing the costs of currency trades.
It calls this a "surprising revelation," since the "prevailing consensus" is that the 4pm London fix is the "optimal" time to trade.
Though small, these added costs can mount up significantly over a year's trading.
"In the worst case scenarios, these costs can even begin to have a debilitating effect on annual performance," says the report, entitled 'A Guide to FX Transaction Cost Analysis, Part 1'.
These conclusions are based on an analysis of real data for the US Dollar/Euro exchange rates. The report speculates that the impact could be even worse on less widely traded pairs of currencies.
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