We are all aware that there is a NASDAQ, an American Stock exchange for trading stocks and equities .It is due to NASDAQ that the traders come to know of the prices of various stocks to be traded electronically. However there is no such facility available for Forex trading. We shall look into the reasons as to why be it so.
First of all we must understand that there is an advantage of having no NASDAQ like body or central market place for trading forex. The market is operational day and night unlike stock market and the trader is able to trade 24 hours a day from any place in the world.
Another reason as to why there is no central market place is that there are several pairs simultaneously traded .If there are more pairs the risk involved is reduced.
The brokers and other participants like banks and institutions participating in trading forex can control the liquidity. This is very reason why forex traders can earn profits irrespective of whether the markets are doing economically well or not. This can again be attributed to the fact that there is no NASDAQ like body to control the rates.
Moreover in the stock market NASDAQ is much needed because there are thousands of stocks to be controlled. Whereas the choices in the forex market are extremely limited. There are only a few currency pairs that can be traded. Even if there were some NASDAQ like body the role would not be very significant in the trading process.
In fact the absence of any forex index works to the advantage of the traders. It does not put any time restrictions on the forex players. The limitation of time would only cut down the profits.
Thus, there is no effort even from the traders’ side to create any forex index.
No related posts.
Posted in 
