The market is split up between major and minor currencies. People cannot trade between these different groups as that would cause huge spreads between buyers and sellers. The major currencies include the US dollar, the British pound, the Euro, and the Swiss Franc. Some of the minor currencies include the Canadian dollar and the Australian dollar. These currencies are all traded daily making the market fluctuate between different prices.
Another thing to realize is that firms are split up into different categories so each company is placed into a specific group. The largest group is made up of the big banks which control over 70% of the market. There are about 10 of these banks and each one has a huge amount of power in the market. These banks can cause interest rates to fall, changes in the stock market, and many other fluctuations in the economy.
The next group is composed of smaller banks and large multi-national corporations. This group does not trade as much as the larger banks, but they still hold a lot of power and can cause changes in the economy.
The lower groups are composed of individual brokers, smaller corporations, and other investing firms. A large amount of the people can be found in this group so there are many trading options occurring in this market.
The main way to move up into a higher level group is to trade a greater amount of currency. By trading more currency, you are affecting the market more thus putting you into a new level.
The market is much different from the stock market has most view the forex market like an over the counter drug. People can directly make trades with one another without having to wait. As long as two people agree on a trade, it can take place.
Recently many new people have been deciding to take part in this great business. To learn more about Forex Trading check out http://www.forex-
