How Do Forex Market Prices and Trends Are Determined?
The Pre-Markets are the electronic data provided to the trading of currencies by the brokers and dealers at pre-defined intervals, typically once per day, and have a unique serial number embedded in them which identifies them. In contrast to the real time market data such as price feeds, which are real-time data from the exchange floor, the Pre-Markets are the accumulated data over the course of real time from the computer network of the dealer or broker. They have more flexibility than the real-time data in that they are able to capture and save more information for longer periods than the price feeds and are regularly refreshed by the network in order to provide more accurate information than the latter. This information is valuable to the trader who wishes to make some analysis of market prices, but pre-marks are often less frequent, and hence not worth the cost of using them. This is why it is important to limit your exposure to the Forex market through use of pre-marks.
Because of the benefits of the Pre-Markets, they are being used more frequently by both novice and experienced traders alike. For the novice trader they offer many advantages, including the fact that they do not require the trader to subscribe to a broker for use in their services. Also, when you place a bet using the Pre-Markets, there is no need to pay for any fees in order to trade, so you are able to free up capital for other activities such as making new trades and/or diversifying your investment portfolio. With regards to diversification, some Pre-Markets will allow you to trade in different major currency pairs, whereas price feeds may not be flexible enough to allow this.
It is also important to note that the information on pre-marks are constantly updated and are available to all users of the Forex market at any time. Hence, traders who want the most up to date data regarding the current Forex market prices and trends can rely on the pre-marks as their main data source. This is unlike the real time data that is only available to brokers and other large financial institutions. As the market evolves so do the Pre-Markets, with each day the number of available markets will grow as more users take advantage of them to increase their trading capital. As the demand for the Pre-Markets increases it will become even more popular, which will ensure its continued growth in popularity until it reaches a point where it becomes as useful as traditional real time Forex data feeds.