4.2 Market structure – Forex

Financial Market Structure

Let us talk about the market structure of the Forex market and what is it that gives it its structure

  1. Non-Centralised and Non-Regulated – Unlike the Stocks market, Forex is not centralised and not regulated.

  2. Price variances – The above would result in price variances. This means that the price that we are getting on the chart can be refuted as different brokers would have different prices (SAXO can have a different price as the Barclays account). However, you cannot refute the prices as there is no centralisation and regulation behind the market itself. As such, there is nothing you can do about the price that you are getting. This is nonetheless part of the structure.

  3. Tight Spreads - It is very competitive. You can achieve tight spreads through Forex trading. This means that we can get into positions very easily and quickly with a minimum amount of fee.


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