Foreign currency exchange (FCX) Explained

[rockfl9]

The FCX market runs 24/7. It follows the sun.  By telephone or computer there is trading taking place every minute. The  traders usually work for well known financial operations and the exchange is based on trust.  

The FOREX is NOT the market itself but a reporting service . It takes a snapshot of the latest buy/sell prices in a market and computes a MIDPOINT. It does not mean that a trade took place at that price or that a trade took place at all , it is just the consensus of the traders at that time. A trade will take place ONLY if there is a DEMAND or the offer price is low enough for a savvy trader to make a future profit. The trader of  last resort is usually the central bank of the country issuing the currency. 

So my point is that the system is based on supply and demand, the demand part being the most important. If there is no demand for a currency there will not be a trade at any price.

[gamblinkid]

Thanks Rock