Monday, December 12, 2011

How are currency prices determined in forex market?

How are currency prices determined in forex market? Does goverment has any role in it or it runs as a free market?|||Currency prices are affected by a variety of economic and political conditions, most importantly interest rates, inflation and political stability. Moreover, governments sometimes participate in the Forex market to influence the value of their currencies, either by flooding the market with their domestic currency in an attempt to lower the price, or conversely buying in order to raise the price. This is known as Central Bank intervention. Any of these factors, as well as large market orders, can cause high volatility in currency prices. However, the size and volume of the Forex market makes it almost impossible for any one entity to "drive" the market for any length of time.|||marketiva is the best forex trader available and it also offer 5$s free to do live forex trading. And 10,000$ to prctice in demo account. And do not forget to veryfy your account by providing necessary details !|||people who buy decide how much they want to spend

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