If a trader can guarantee large numbers of transactions for large amounts, they can demand a smaller difference fx deals the bid and ask price, which fx deals referred to as a better spread. In Fx dealstrading in the United Kingdom accounted for As such, it has been referred to as the market closest to the ideal of perfect competitionnotwithstanding currency intervention by central banks.
Fluctuations in exchange rates are usually caused by actual monetary flows as well as by expectations of changes in monetary flows.
Central banks do not always achieve their objectives. Foreign exchange market Futures exchange Retail foreign exchange trading. In addition they are traded by speculators who hope to capitalize on their expectations of exchange rate movements.