Discussion of Forex Trading and Currency Trading

When websites publish exchange rates, where do they get it from? Is an organisation summing up currency trade?

Because every website on internet publish the same exchange rates, I know how exchange rates work (supply and demand of currencies), do they agree on exchange rates? Why don't they differ? How can there always be only one value of, say, dollar compared to euro, and they never differ from a source or another?

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This entry was posted on Wednesday, May 27th, 2009 at 6:41 am and is filed under Currency Trading. You can follow any responses to this entry through the RSS 2.0 feed. You can leave a response, or trackback from your own site.

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One Response to “When websites publish exchange rates, where do they get it from? Is an organisation summing up currency trade?”

  1. Itchy1977 Says:
    May 27th, 2009 at 6:41 am

    Very good question. Tthe rates do actually differ very very slightly depending on where you see them, by up to 15 to 20 pips.

    Think of it this way, if you buy currency from me, I then go and buy it from my source, who then buys it from his etc etc This may happen 3 or so times until it's brokered by a market makers like Barclays Capital in the city - it's these market makers that are trading the big figures - billions a day, and its these market prices that filter down to rates you see published like the ones on my blog.

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