What Really is a FOREX Market Maker

A FOREX market maker is sharp when it comes to the present cost or price of dealing in the FOREX market. They examine the prices of purchases, as well as the selling prices in currency exchange. Market makers aren’t agents or trustees or intermediaries. They are neutral and they serve as counterparty to the clients’ position and provide platforms for FOREX for the customers. They help the customers to lower their risks of losing financial funds in the FOREX market. Foreign exchange is a market that is quite unregulated; hence, risks are inevitable in its trade.


Market makers are organizations or companies that influence and control market values. FOREX businesses and banks are perfect exemplars of these market makers. Essentially, they deal finance resources but they do not apply charges or earn commissions from customers. Then you may ask how they make their money or profit. There is a difference in buy price and sell price in FOREX, and that difference is known as “spread”. The difference between that spread of currency traded is where market makers earn their money. It is their main source of profit. But don’t get it wrong. Market makers cannot just augment their income that easy by reducing the profit of the customers in the process. Although market makers always name the costs of trading, customers, on the other hand, also know both the ask rate and the bid rate. In addition, the process of trading is fundamentally based on the supply and demand in the market. So a FOREX market maker cannot just fly in the face of a customer’s position to be able to gain profits.

As market makers do business involving huge amount of money and trade, they are somehow compelled to work within pertinent international guidelines and also with their own policy on risk management. FOREX is without a doubt, a good market and most of the FOREX firms are also market makers that offer clients the maximum liquidity that can be possibly achieved.

Market makers offer user-friendly charting software and indicators that are practically free of charge, and such are very useful tools in trading. They also provide daily news feed of what is transpiring in the economic movements in the market. Less risky prices and faster trade implementation are also being made available by market makers. But of course, there is always a “B side” to every story. Market makers are quite unreliable sometimes. They may restrict trading chart for a definite period of time and even hold any execution of orders. Furthermore, they may sometimes trade against customers and totally manipulate the prices.

Just always remember that entering the world of FOREX trade really entails risks and that anyone who will join the market must be equipped with knowledge, resources, talent and a great deal of connection to be able to cope up with the movements in the market.

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