Is there an official exchange rate?!

[Izamhaizea]

Various brokers have different bid and ask prices for every cross or pair. On the other hand, the bid and ask price is based on something...I am assuming some official rate of exchange set by something? What is this some thing and where can we get this official data?

[fimwzenk]

Entrance:///

Yes, you can go with all the retail brokers....
Or you may trade like ordinary traders.

CME man. Check it out.

[Izamhaizea]

?

[xxff7]

?

What do you I mean by bigest (funds, clients etc.)?
Why would you think that's critical?

[Izamhaizea]

I want to be trading in the biggest market.

What do you I mean by bigest (funds, clients etc.)?
Why would you think that's critical?

[Piolel]

I wish to be trading at the biggest market.

In Currency Market, you are already trading at the biggest market whatever the broker or market maker you are trading with....


Thanks,

Nader

[Izamhaizea]

Yeah the place FX market overall is huge, but each broker has different prices. Close, but not accurate.

In FX, you're already trading at the largest market regardless of the broker or market maker you're trading using....


Thanks,

Nader

[oxmpagigel2]

yeah the place forex market overall is huge, but each broker has different prices. Close, but not exact.

Since there's absolutely no established trading floor or exchange. That's just their best fit of this market, particularly in regards to their financial policies (they have to earn money also, what are spreads for after all).

[bypoxa]

I believe Clam would like to know where the broker receives it is price feed from. Even better, where does the quote supplier get the quotes since there is absolutely no trading floor. My understanding is that there is an interbank market (a completely electronic trading system between approximately 20 huge banks) and THAT is where quotes come from. That's why all broker's quotes are comparable.... They have to have the same source, even though it get's distorted along the way for your chart.



All that said, the second question is Where's the biggest market? I thought the exact same thing . When I exchange with FXSOL, who is taking my money when I shed a transaction? Is it an FXCM trader? Is it a bank? I feel it's going to be an additional FXSOL trader. I don't know if each broker produces its own market, but I think it might. Your funds may never actually leave the broker's bank account that you fund.... And you may be trading strictly with other people at your brokerage.

[oxmpagigel2]

I believe Clam wants to know where the broker gets it is price feed from. Better yet, where does the quote supplier get the quotes since there's absolutely no trading floor. My understanding is that there is an interbank market (a completely electronic trading platform between approximately 20 huge banks) and THAT is where quotes come from. That's why all broker's quotes are comparable.... They must have the identical source, even though it get's distorted along the way for your chart.



All that said, the next question is Where's the biggest market? I believed the same thing to myself. While I trade with FXSOL, who's taking my money when I lose a transaction? Is it an FXCM trader? Is it a bank? I believe it's going to be another FXSOL trader. I really don't know if each broker creates its own market, but I think it might. Your money may never really leave the broker's bank account which you finance.... And you may be trading strictly with others in your brokerage.

When you trade with FXSol I'd bet money that they're the ones carrying your money. As for the actual exchange, there is an interbank electronic exchange networks. There are two really. One is run by reuters, and the other is. . .well I overlook the other, but I know there is two. Here are the networks that the Tier 1 brokers/liquidity suppliers trade on and it trickles down from there. Your trading pool is simply the liquidity suppliers which are intermingled with each other which you chance to be a part of. To really be a player in the game you need to trade with an ECN that are members of these networks, or using a real bank itself such as RBS. You then trade both the banks and other Tier 1 entities.