Can the Forex Market be manipulated?

Is currency manipulation possible? Yes. Forex Market be manipulated  Can a retail trader do it? No. Manipulation is when the value of a currency is temporarily lowered or improved. This is usually done by countries (central banks) to their own currency. If the value needs to be depreciated, the central bank will create a supply and if the value needs to be appreciated, demand will be created by the central bank.  Retail traders, however, cannot do this. There are a few reasons for that. Reasons why the forex market cannot be manipulated It’s an OTC market One of the main aspects of the forex market, and one that is widely discussed when people sing the market’s praises is that it is an OTC market. An OTC market is one that is not centralized. It is an Over The Counter (hence the name OTC) system in which no one regulatory authority controls it. What does this mean? It means that there isn’t one agenda or one motive that is being pushed. There isn’t one market maker. The moves of all the participants of the forex market together decide the direction the market will take. This is why market sentiment is so important in forex trading and analysis.


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