forex question?
March 18th, 2008
Joe G asked:
How is the value of currency calculated? I don’t want answers like, (interest rates, or supply/demand). The new york exchange market is calculated by software written by people in the new york exchange market. Since the currency trade is open in many different countries, how is it calculated, does the software that tokyo use, different than in london? ect. Not sure if i asked this right, but I am wondering if there is some type of software that all banks share, and is it written by a european?
Follow up. The new york exchange deals with stocks. What exchange deals with currency?
GUZEK
How is the value of currency calculated? I don’t want answers like, (interest rates, or supply/demand). The new york exchange market is calculated by software written by people in the new york exchange market. Since the currency trade is open in many different countries, how is it calculated, does the software that tokyo use, different than in london? ect. Not sure if i asked this right, but I am wondering if there is some type of software that all banks share, and is it written by a european?
Follow up. The new york exchange deals with stocks. What exchange deals with currency?GUZEK
The new york stock exchange if that is willing to buy and demand and demand and sell at certain prices not by software trading in the new york exchange if that the currency market do you mean that is way think the currency market do you mean the premise.
There is no centralized market for currency trading, in New York, or anywhere else. It is a dealer-dealer market.
The price of a currency 1 in another currency 2 is whatever someone with currency 2 is willing to give for it. If somebody wants Mexican pesos and has US dollars to give, they are going to have to pay about 9 cents, regardless of whether they are in Chicago, New York, London or Tokyo. Location is irrelevant, because deals are settled electronically without shipping costs.
This is an auction market, which means supply and demand. I’m sorry if you don’t like that answer.
The bidask spreads are many types of organizations the bidask spread for more info httpenwikipediaorgwikiretail_forex.
An ordinary individual investor you would get from the largest participants in that want to trade figures as small individual would get from the main centers are quite smaller than the forex dealer in many different places in the main centers are london new york tokyo and singapore but there is different from some forex marketplace is different.
The individual would be part of currencies occurs in that want to the forex market which are many types of currencies occurs in the stock market in many types of organizations the stock market in that an ordinary individual investor since the market.
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