Categories: Market

Market Structure”: An Overview of Forex Trading

The market structure of Forex trading is highly complex and constantly changing. It is regulated by central banks, international banks, and other financial institutions. Forex trading is mainly private with electronically negotiated trades between two parties such as a bank and a customer. It is also done in a decentralized manner in which banks all over the world offer differing prices for a currency pair. The foreign exchange market is also known as the Spot or Cash market, and its main purpose is to facilitate the transfer of currencies from one country to another. The Buy Side and Sell Side participate in this market, producing liquidity and providing price stability. Prices in the Forex market are determined by the factors of demand and supply.

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