Forex Market Comparison

Trading markets go way back in time, as early as the 11th century. It's interesting to compare the history of trading markets with modern day markets, specifically the foreign exchange (FOREX). Even today there are some similarities between the foreign exchange global market and the original markets. Currently there are many buyers and sellers for a given market and new investors can enter the market easily. By it's very nature forex takes place in many geographical locations. Due to technological advances information that can affect the markets is readily available around the world. Forex traders globally are continuously in contact and buying and selling from each other. Technology has helped create a market where centers are open at the same time and there is no evidence of substantial price differences. Unlike fur trading in an 11th century village, today there is not perfect “transparency,” or full and immediate disclosure of all trading activity. Individual traders know about the orders and the flow of trading activity in their own firms, but that information may not be known to everyone else in the market. Today's technology, including the use of electronic trading and brokerage systems, has increased transparency. Pricing information is more broadly distributed for certain foreign exchange products and currency pairs. Like an "electronic village", the over-the-counter forex market could be regarded as not only large and liquid, but also somewhat transparent, efficient and smoothly functioning.