Bank of forex

Forex bank has been around for a while now; since 1927. The start of it brings to mind the bible saying, “do not despise the day of small beginning”. The forex bank started out from a barber shop in Sweden and grew to about 110 branches in four different countries. The business boomed under the authorities that it was the only company, besides banks, that was licensed by the bank of Sweden to trade in foreign currencies. In 2003, the forex bank of Sweden became a bank, with so much strength in currency exchange in the Nordic region.

The forex bank of Sweden is one of the banks that control the forex market. With so much strength in currency exchange, the forex bank of Sweden is even more focused in trading the forex market more than any other banking activities; that is basically exchange of one currency for another. Their services include

  • Ordering for currencies

  • Current rates of currencies

  • Currency graphs

  • Travelers cheques

  • Foreign currency

  • Loans

  • Bank cards

  • ETC

TRADING THE FOREX MARKET LIKE FOREX BANKS

The banks control over 90% of volumes traded in the forex market. This is to say that retail traders may be more in number, but the banks gets the upper hand in the forex market. They follow three simple trading steps to make good profits from their trades

- ACCUMULATION:

Here, they accumulate a particular position for a really long time. The whole idea is to open as many position as possible during the market consolidation periods, or during the bound markets. This time of accumulation enable the banks to buy in through tight range bound periods and also to get a much better overall entry price.

- MANIPULATION:

Manipulation has to do with increasing and decreasing the price of the security in question. If the bank wants to sell out a huge volume of EUR USD, there is need for a buyer willing to buy the equal amount. To achieve this, they push the price of the security up, giving traders the impression that the commodity is scarce. This in turn will make them want to buy it off the market. Eventually, after the banks must have achieved their aim, the market turns in the opposite direction and against many retail traders that fell for their manipulation.

- DISTRIBUTION:

After the accumulation and manipulation process of the bank, there is the distribution stage. At this stage, the banks create a market trend; that little push to get a lot more people buying into the market. Usually when the market is trending, a lot of people want to benefit from it. While many do benefit from it, a lot of others are stuck and eventually lose by the time the bank changes the course of the market.

The content of this article reflects the author’s opinion and does not necessarily reflect the official position of LiteForex. The material published on this page is provided for informational purposes only and should not be considered as the provision of investment advice for the purposes of Directive 2004/39/EC.

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