What is OTC market
over-the-counter market is when traders are trading with special software to Buy or Sell currencies. The most Forex brokers will connect your trades over the interbank market. There is no huge difference between the currency markets and any other market.
Some people think the market is the place where you can buy or sell grocery or fruits but you deal with currencies such as Euro, Dollar and other currencies and the daily income is about $40.000. But in the Forex market, the daily income is about 4 trillion US Dollars. And it’s not because cucumbers or tomatoes are cheaper than euros, it is the amount of market participants and their wealth that makes the Forex market so big.
There are few substantial differences between currency markets and other types of markets. One more difference that we should note, however, is use of advanced information technology. Financial markets use IT on a significant basis.
The main currency markets are in the USA, England, Euro and Japan.
Forex Market combined from five main divisions: Brokers, Traders, Accounts, Instruments and Orders. How the modern Forex trading process works: a Trader applies to a Broker for an Account, later he selects his fiscal Instruments to trade and places his Order. As a second instance, the market price for the Instrument growth and the Trader sells the Instrument, the Order makes a profit and the Broker expands the amount of money of the Trader’s Account. As you can see, any given market position inclusive these five elements.
The order for the second instance is Instrument – Order – Broker – Account – Trader, and comes closest to describing the world of Forex in this eBook. Every one of the five Forex ‘pillars’ revealed above has its own features, fine distinctions and associated terms, and will be explained in this document.