|
|
| Retail Foreign Exchange Trading |
|
Two major segments constitute the FX market: inter-bank currency exchange and retail trading.
Inter-bank trading is wholesale currency exchanges and settlements among brokers and major banks.
The retail FX market is a non-inter-bank, margin-based trading market. Margin-based trading is trading on margin, that is, to trade a lot of $100,000, a customer needs to have only as much as $1,000 on hand (depend on credit risk and margin requirements).
Money managers, sophisticated high net worth traders, international corporations and small to medium size banks and financial institutions, as well as individual investors are retail FX market participants.
|
|
|
|
|
|
Overview
