My Great Forex Exchange Item

June 25th, 2009 by anguel10

There is no exclusive unified foreign exchange market.
Due to the over-the-counter (OTC) nature of currency markets, there are rather a number of interconnected marketplaces, where different currency instruments are traded.
This shows that there is no such thing as a same dollar rate – but rather a number of different rates, depending on what bank or market maker are buying and selling.
In practice the rates are often very close, otherwise they could be abused by arbitrageurs.


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