The standard industry practice for currency dealers, including dealers on the interbank market, during fast market conditions and price gaps, is to set market levels and execute orders manually without the use of automated systems or services. The process during fast markets is typically:
- Initially, major money center banks and other online price providers halt all direct dealing and their pricing engines are suspended,
- Currency dealers analyze event and determine the correct price,
- Prices enter market 20-30 pips wide or more,
- Spreads in market narrow as more currency dealers enter the market.
Ehm, all trading is suspended? How the hells is the news price derived so quickly? On my currenex platform, i can hardly blink after some news has been released and the price has already changed. Those must be some super fast currency dealers. And anyway, isn't this supposed to be a free market, why would some one determine the correct price, how the hell do they know?
Also, i was told that prices can update something like 100,000 times a second (on currenex) And all of that is manually processed? Lol..
Please someone, explain
Best regards,
Vlad