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Foreign exchange transactions

cashback forex forexrebateclub transactions are mainly used in two ways: one cashbackforexbroker the exchange way this way there are fixed cashbackforexexness places, such as Germany, France, the Netherl forex rebate clubs and other countries foreign exchange, as well as foreign exchange futures trading Chicago Mercantile Exchange; these exchanges have fixed business hours and places of business another is the OTC way this way is 24 hours operation, no specific trading places, the two sides rely on the telephone or network and other communication equipment to reach the transaction OTC way is the main organization of the foreign exchange market it is different from the traditional sense of the market, and does not have a central trading place, the vast majority of transactions are carried out by telephone or network; this kind of transaction is the main form of foreign exchange market. Trading parties rely on the telephone or network and other communication equipment to reach the transaction OTC way is the main organization of the foreign exchange market it is different from the traditional sense of the market, and does not have a central trading place, the vast majority of transactions are carried out by telephone or network; this no unified site of the foreign exchange market is called the market without the field global foreign exchange market every day nearly two trillion dollars of trading volume, is in this neither The rise of electronic trading early TC trading mainly by telex, telegraph and telephone and other means of communication to achieve with the development of computer technology and network technology, electronic trading began to rise, and triggered the foreign exchange trading mechanism and foreign exchange trading technology changes in the past only for interbank traders open real-time quotes now through the network At the same time, electronic trading also changed the characteristics of the foreign exchange market and trader behavior, the speed of light transmission of information makes the herding effect in the international scope of the instantaneous transmission, intensified the day-to-day volatility of the foreign exchange market electronic trading mainly has two models, one is to serve the institutional customers of the ECN ( electroniccommunicationsnetwork (ECN) mode; the other is to serve the retail customers of the inquiry (Dealer) and a single market maker (Marketmaker) mode we usually contact the foreign exchange margin brokers usually use the latter trading method ECN is an electronic trading network, the traders Orders are listed directly and anonymously on this network, and the buying and selling prices are generated by all traders participating in this ECN, so the price on the ECN is the real market price ECN operators generally do not participate in the transaction but only receive trading commissions, so they will provide customers with the best possible service EBS and Reuters are proprietary ECN systems specifically for the top banks who EBS mainly provides electronic trading platforms for trading in USD, EUR, JPY and CHF, while Reuters mainly provides services for trading between GBP and other currencies. Currenex, Fxall, FXConnect, Hotspot, etc. They each have their own business focus, for example, FXConnect is mainly for fund managers, while Currenex is focused on developing corporate clients ECNs future direction will be to combine the advantages of the exchange model and the OTC model to provide customers with a better trading experience Reuters and CME is ready to establish the FXMarketSpace is representative of the trend of OTC foreign exchange trading, FXMarketSpace is said to be the worlds first central clearing foreign exchange market; through the central clearing, will reduce the credit threshold and non-market risks of trading, so that more small and medium-sized investors can participate in it although the ECN model is more fair and transparent, but these real The foreign exchange market threshold is high, usually only to large trading volume and high net worth of financial institutions open, so individual investors mainly through the foreign exchange margin or domestic real foreign exchange spot trading due to the domestic real spread high, one-way trading, no capital leverage and other shortcomings, experienced foreign exchange investors usually choose foreign exchange margin trading and ECN bidding mode is different, foreign exchange margin trading is usually The use of inquiry and single market maker model individual investors face a single pair of home for inquiry and trading, the fairness of the offer relies on the integrity of the broker broker itself is a market maker, they generally first aggregate and filter the price of the bank or ECN, and then add their own profits and then offer to customers, so customers are actually making transactions with market makers (on the ECN is trading with anonymous traders) Customers see and trade is not the real price of the market, and the execution price of the transaction is decided by the foreign exchange broker, so it is not surprising that the transaction price is often in favor of the broker after the customers single into the market makers system, the first internal hedge between long and short positions, and then the remaining net position to the bank or ECN they are attached to hedge, can also be partially hedged Or simply do not hedge, which belongs to the category of betting betting is that these market makers do not take all the net positions to the ECN or bank to hedge For example, a foreign exchange broker received 1000 lots (forex trading units, usually 100,000 units of base currency) of buy EUR/USD orders and 800 lots of sell EUR/USD orders from customers, then after internal hedging the remaining 200 lots of net long positions in EUR/USD, then the net long positions in EUR/USD are hedged internally. U.S. dollar net long position, but the company is willing to assume the risk of market fluctuations in this part of the position, and did not put the 200 lots of EUR / USD net long position to the bank or ECN to do a reverse transaction, which is called and customer betting in the relevant U.S. laws and regulations do not rigidly specify how to hedge risk, which depends entirely on the traders own risk control strategy if the customers single can be fully hedged in a timely manner. The existence of this hedging/hedging model means that at certain times (such as when major U.S. data is released, or when market prices fluctuate dramatically), you may not be able to connect to the brokers trading system on a regular basis. The brokers trading system for effective and rapid trading, because at this time the broker is difficult to transfer the market risk in a timely manner within the limited cost range, so simply restrict customers to place orders or use some other means of this specific time period often a single can not be filled in the domestic bank foreign exchange trading is also common in the phenomenon

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