Forex Trand

A legacy of innovation and entrepreneurshipIn the late 1990s, a group of American entrepreneurs saw the future oftrading. Over-the-counter (or “off exchange”) foreign exchange tradingwas generating significant profits for large banks and corporationsand, likewise, it lured individual traders who were increasinglybecoming interested in participating in this large, but seeminglyclosed, market.However, individuals with relatively small capital and no access toproprietary bank-to-bank computer systems were only able to tradecurrencies as futures through two exchanges. There was no method fortraders to participate in the over-the-counter (OTC) forex market. Therapid pace of the currency market made it very difficult to trade onexchange, as most exchanges still traded currencies in the pit – anage-old system requiring multiple interactions to place a single trade.In addition, there were only a handful of currency markets available totrade, with inconsistent pricing and trading volumes. The pricingspreads fluctuated to widen significantly during times of increasedmarket volatility, and market liquidity was not sufficient forovernight trading.