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hi; i have a question about different price for a curency pair between brokers in same time?!.

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Mehrdad Shiri
4480
Mehrdad Shiri 2012.11.15 00:49 

hi;

i have a question about different price for a curency pair between brokers in same time;

i mean for a same time there is a difference between price in high or low ( zigzag does not match together ) .

i saw even " 10 pips "  or " 18 pips" different between price ,

and with this:

phi.nuts:
Banks give the broker the buy and sell price

  in my question in:

hi: do you know ; basic data entry to provide tick how does happened in forex?

do you have any information about this?

Gabor Torma
2676
Gabor Torma 2012.11.15 11:22  

TIMisthebest:

i have a question about different price for a curency pair between brokers in same time;

Forex is not regulated market!
phi nuts
2184
phi nuts 2012.11.25 15:32  
TIMisthebest:

hi;

i have a question about different price for a curency pair between brokers in same time;

i mean for a same time there is a difference between price in high or low ( zigzag does not match together ) .

i saw even " 10 pips "  or " 18 pips" different between price ,

and with this:

  in my question in:

hi: do you know ; basic data entry to provide tick how does happened in forex?

do you have any information about this?

Hi TIMisthebest,

My apology that you have to wait for so long to get the answer, I was expecting someone else to reply you.

Let's use simple example, say I want to buy a bread, if I go to Shop A, the price of bread is $ 1. If I go to Shop B, the price of the same bread is $ 0.95, and if I go to Shop C, the price of the same bread is $ 1.05. Which bread I'll buy ?, well the cheap one - the $ 0.95 bread. However, Shop A, B and C, maybe not making the bread itself, but maybe they buying from Bakery or several Bakeries. So if I  buy the bread directly from Bakeries maybe the price is much lower than $ 0.95 :(.

Same thing in forex, one broker may have different price with other broker for the same currency. Broker search the price of currencies from several banks, and buy/sell currencies that cheap and profitable to the broker. Broker the sell/buy that currencies back to us.

So where the banks buy and sell the currencies ? They may buy/sell the currencies from/to other banks or Central Banks. And banks does not have to buy/sell right now, they may buy/sell the currencies later when the currencies become more profitable.

With internet connection, all of these currency trading is done in millisecond.

That's simple explanation, why there's differences of currencies price between one broker with another broker.

Here's Wikipedia article about forex http://en.wikipedia.org/wiki/Forex

Please ask again in this topic, if you still have more question.  

Foreign exchange market - Wikipedia, the free encyclopedia
Foreign exchange market - Wikipedia, the free encyclopedia
  • en.wikipedia.org
Foreign exchange Exchange rates Markets Assets Historical agreements See also The foreign exchange market (forex, FX, or currency market) is a global decentralized market for the trading of currencies. The main participants in this market are the larger international banks. Financial centers around the world function as...
Mehrdad Shiri
4480
Mehrdad Shiri 2012.11.25 17:46  
phi.nuts:


thank you.

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