Apologies if this is in the wrong forum. I'm trying to understand the market structure within forex, can anyone confirm or correct my understanding.
At the top are the big players in the interbank market trading large volumes with each other direct or via EBS & Reuters. These include banks, large companies and hedge funds.
Then there are retail brokers who aggregate(?) retail traders' trades and offset them (maybe?) in the interbank market.
In the interbank market the banks see what trades their clients (big companies) are placing, and maybe some hedge funds, and also can see what retail brokers are offsetting with them.
It is the interbank traders who are resonsible for false breakouts, etc, not retail brokers. Maybe retail brokers stay out of the markets during these times and exist purely to make money off their clients as they are as much victims of interbank tricks as individual traders?
Is it possible to find out how much currency is held in national reserve accounts the world over, and maybe work out how much 'floating supply' is available, if such a thing exists in forex. Is there any way at all to work out what volumes are being traded?
At the top are the big players in the interbank market trading large volumes with each other direct or via EBS & Reuters. These include banks, large companies and hedge funds.
Then there are retail brokers who aggregate(?) retail traders' trades and offset them (maybe?) in the interbank market.
In the interbank market the banks see what trades their clients (big companies) are placing, and maybe some hedge funds, and also can see what retail brokers are offsetting with them.
It is the interbank traders who are resonsible for false breakouts, etc, not retail brokers. Maybe retail brokers stay out of the markets during these times and exist purely to make money off their clients as they are as much victims of interbank tricks as individual traders?
Is it possible to find out how much currency is held in national reserve accounts the world over, and maybe work out how much 'floating supply' is available, if such a thing exists in forex. Is there any way at all to work out what volumes are being traded?