Why don the prices on the charts match the prices on the Refco FX trading station?
Because the spot FX market is decentralized – meaning it lacks a single exchange where all transactions are conducted – each FX dealer (market maker) will quote different prices on their markets. Therefore, any prices displayed by a third party charting provider, which does not employ the market maker’s data feed, will reflect “indicative” prices and not necessarily “dealing” prices. It is important to make a distinction between indicative prices and dealable prices. Indicative quotes are those that offer an indication of the prices in the market, and the rate at which they are changing. Market watchers, such as S&P or ESignal, compile indicative quotes as a proxy for the actual market movement. These prices are derived from a host of contributors like banks and clearing firms, which may or may not reflect where Refco FX’s market is. Although these charts are not an accurate reflection of Refco FX’s market, they can justifiably be used for technical analysis, since the overall trends i
