Forex Market Structure
Forex market structure, the intricate framework that governs the world's largest financial market, presents a fascinating landscape of decentralized trading, complex interactions, and dynamic influences. Delving into its depths, we embark on a journey to unravel the components, participants, and dynamics that shape this colossal marketplace. At the heart of the forex market lies its decentralized nature, where trades occur over-the-counter (OTC) between a vast network of participants. This intricate web of interbank networks and electronic communication networks (ECNs) facilitates a continuous flow of currency exchanges, ensuring liquidity and efficiency. Forex Market Definition and Overview The foreign exchange (forex) market is a global, decentralized marketplace where currencies are traded. It is the largest financial market in the world, with a daily trading volume of over $5 trillion. The purpose of the forex market is to facilitate the exchange of currencies fo...