Page 13

HANDBOOK ON FOREX TRADING

The FX Marketplace At the core of the FX market, there is a network of banks, which trade against one another. This is known as the interbank market. This interbank market accounts for the bulk of daily FX volume, which amounts to US$3.2 trillion daily. The banks trade directly among themselves through a network of dealing stations. Each bank has a unique code through which other banks can make contact and connect directly with to carry out their trades. They can conduct their trading through an electronic broker called the Electronic Broking System (EBS). Banks will conduct their buying and selling by placing their buy orders and sell orders in the electronic broking system, where buy and sell orders of the same 

price are matched. If prices cannot be matched, they will be put in the queue. Prices will remain in the queue till they are matched or withdrawn. Bank A

Bank D

EBS

Bank B

Bank C Hedge Fund B

Online Broker

Money Changer

Retail Trader A

Retail Trader B

Retail Trader C

Fig 1.1 The FX marketplace and its participants.

Hedge Fund A

Profile for casey goh

Handbook On Forex Trading  

Handbook On Forex Trading is the best guide to get you started on trading forex. Forex trading is an alternative to the stock market as the...

Handbook On Forex Trading  

Handbook On Forex Trading is the best guide to get you started on trading forex. Forex trading is an alternative to the stock market as the...

Profile for rankbooks
Advertisement