how banks trade forex

Support & resistance a key component in understanding the decision moments of the market is via support and resistance (s&r).Dollars, a micro lot represents $1,000.Yes, banks can trade forex.As you can see in the illustration above, the top 10 banks control well over 60% of the daily forex market volume.Currency is traded in various sized lots.

This interbank works using electronic networks that facilitate trades among forex players.One of the major players we have in the forex market are the banks.Finance & accounting investing & trading forex.They are drivers of foreign currency exchange trends and consistently make big profits from trading (the remaining 90% are the retail traders or individuals who trade their money using their personal accounts and do not work for an institution).Banks are large organizations that have both the manpower and extensive experience in different areas of the financial markets.

4.1 out of 14.1 (74 ratings) 954 students.Trend or distribution as banks contribute massive trading volume, they must enter the position from time to time.The patterns have more value when they appear in areas with confluence.Banks facilitate forex transactions for clients and conduct speculative trades from their own trading desks.Distribution this is the third and final phase of their trading strategy.

The same holds true for funds and prop firms.By comparison, the approximately $700 billion a day bond.Make predictions about the economy.Their whole job is not about.