The Foreign Exchange (FOREX) market is one of the most exciting forums in the business
world globally which facilitates International trade and Investments. By the means of FOREX markets, international buyers and sellers of different currencies can trade across the globe without getting affected by time zone differences. Price quotations in this market are similar to that of the stock market. People are always looking to sell currencies at a price higher than they bought it. So, they are always watching currency price quotations and its movements like their lives depended on it.
At Foreign Exchange markets, trading is done in the trading rooms where there are two categories of traders. The first usually have the best selling price quotations and are called the "main traders" while the second set are known as "market makers" as they usually deal in wholesale. Then we have Portfolio managers assessing the overall market space before getting in to the trading room.
FOREX price quotations can be listed on electronic FOREX boards, over the phone or gotten through online brokers. Available currency volumes, demand and supply are a big determinant for the buying and selling price, because these are the main drivers of profit in this market. Some dealers occasionally decide to sell a little just below the currently quoted price when the volumes to be exchanged are really high, especially if they bought at a much lower price.
Outlined below are certain key points which should be kept in mind while quoting a price in foreign exchange market:
- Always research and analyze the market situation. This will assist you to avoid any wrong decision in terms of investment
- Beginners should always consider expert opinions before making a deal based on price quotation in the market
- Currency fluctuation has been every evident in the recent past. Hence it's always advisable to keep that in mind.
- It's imperative to read, construct and present the price quotation in the most appropriate manner. Any doubt or confusion could lead to a loss.