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Introduction to Forex Forex Market Structure


Underst cashback F cashback forexexrebatekingforexing the structure of the foreign exchange Forex rebate king forexrebateindonesia one of the necessary skills to begin speculating in foreign exchange, in order to facilitate the novice speculators to facilitate the interpretation and distinction, we will explain the structure of the stock market and the structure of the foreign exchange market respectively, for your reference We will first look at the structure of the stock market: in the centralized trading market, buyers and sellers need to trade through professionals determined by the nature of the The stock market has a very strong monopoly where there is only one entity, a specialist who controls the price and through which all traders must trade. In the stock market, the specialist is forced to fill his clients orders Now, if the number of sellers of a stock suddenly exceeds the number of buyers, it may be difficult for a seller holding a large number of stocks to sell his holdings to a buyer because the specialist is forced to fill the order To avoid this, the specialist simply needs to widen the trading spread or increase the trading fees to avoid the sellers from entering the market In other words, the specialist is able to manipulate the price of the stocks he sells to meet his demand The spot forex market is a decentralized market and unlike the stock or futures markets, you do not need to enter a centralized market such as the New York Stock Exchange where there is only a single price quoted in the forex market, there is no single price for a currency at any given time, which means that quotes vary from currency trader to currency trader. At the same time, another exciting thing about the Forex market is that you can trade Forex from anywhere, and although the Forex market is decentralized, it is not simple or disorganized, and Forex market participants can be organized in different levels. This market consists of the worlds largest banks and some other smaller banks, and the participants in this market trade directly with each other or electronically through EBS or ReutersDealing3000-SpotMatching. Pepsi they are in a non-stop war for each others market share Although both competitors offer quotes for most major currency pairs, one may offer more liquidity than the other EBS and Reuters are specialized in top banks and proprietary ECN systems They essentially account for nearly 70% of the market share of spot trading in the international foreign exchange market For EBS, EUR/USD, USD /JPY, EUR/JPY, EUR/CHF and USD/CHF are more liquid, while for the Reuters platform, GBP/USD, EUR/GBP, USD/CAD, AUD/USD and NZD/USD are more liquid. The higher your credit rating, the better your reputation in the interbank market, the better rates you will be able to get and the larger loans you will be able to make in the FX market. As these institutions do not have a close credit relationship with the interbank market, they have to trade with commercial banks, which means that their rates are slightly higher than those of interbank market participants. For example, FXConnect is mainly for fund managers, while Currenex is fully committed to developing corporate clients Through the above comparison, investors do not feel that the structure of the foreign exchange market is more perfect and fair!
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