Foreign Exchange Market Through SigmaForex

Foreign exchange brokers, unlike equity brokers, do not take positions for themselves; they only service banks. Their roles are:

* bringing together buyers and sellers in the market;

* optimizing the price they show to their customers;

*quickly, accurately, and faithfully executing the traders' orders.

The majority of the foreign exchange brokers execute business via phone. The phone lines between brokers and banks are dedicated, or direct, and are usually in-stalled free of charge by the broker. A foreign exchange brokerage firm has direct lines to banks around the
world. Most foreign exchange is executed through an open box system—a microphone in front of the broker that continuously transmits everything he or she says on the direct phone lines to the
speaker boxes in the banks.

This way, all banks can hear all the deals being executed. Because of the open box system used by brokers, a trader is able to hear all prices quoted; whether the bid was hit or the offer taken; and the following price. What the trader will not be able to hear is the amounts of particular bids and offers and thenames of the banks showing the prices.