Volume and liquidity of forex market

[borisforex]

The volume of trading in the currency market was divided into two main parts:

- Section One:
It includes all of the past financial institutions and banks that make up the interbank system, which constitute an estimated 34% of the total trading volume in the currency market, and the second section represents: Interbank clients, and they constitute about 66% of the total trading volume in the currency market.

- Section Two: Clients with Financial Objectives:
They constitute 59% of the total trading volume in the currency market, and they are clients with non-financial purposes and goals. This talk means that these clients trade in the currency trading market with the aim of conducting export and import operations, as well as satisfying their need for currencies, which includes multinational commercial companies, and they constitute about 7% of the total trading volume in the currency trading market.

In order to be able to deal directly with these huge banks and financial institutions, you will have to create a lot of credit relationships with them, which will cost you a large amount of money, while most individuals will not be able to pay all this money, and from here the idea of ​​intermediaries appeared Forex, as they perform their role in communicating with the largest banks, and the reason for this is that Forex brokers make up huge numbers of clients, and therefore they own large numbers of shares to create a group of credit relationships that make them easily able to deal directly with these banks, as forex brokers act as a mediator between the trader and the interbank market, and thus every time a trading position is created to buy the European currency "euro", for example, your forex broker will play its primary role in warning its open positions with the big bank that The trading process is conducted through it, in order to work on translating this variable, and at that time, your forex broker will charge a few fees for this service.

[chikoOoOo]

Who provides liquidity to the forex market..?

A liquidity provider is a broker or financial institution that acts as a professional maker in the financial market, operating at both ends of currency transactions (buying and selling). Market participants provide several types of liquidity in the forex market, thus increasing the volume of liquidity. These include: central banks, major commercial and investment banks, hedge funds, foreign investment managers, forex brokers, retailers and investors with large funds.

The best liquidity providers in the foreign exchange market are known as tier 1 liquidity providers. These banks consist of the largest investment banks that have large funds (liquidity) in the forex market. These banks offer buy and sell rates for the foreign currency pairs they enter into the markets, and often offer their clients a range of other financial services.

Good Luck To U ...

[mahmoudabuzaidsaad]

What is Forex Liquidity?
When we talk about market liquidity, we mean the volume or volume of transactions. When the market has high liquidity, this means that people can buy or sell large quantities of assets with almost no effect on price movements.


The importance of liquidity in the forex market cannot be stressed. As we have already noted, one of the most important aspects that enable attractive rewards in trading is having a liquid market. This is where the requirements for liquidity services in forex arise. The liquidity provider will make sure to achieve more price stability by taking a position in forex pairs that can be offset with another market maker or added to the market maker's book to be liquidated at a later time. Some Forex market makers will monitor orders and contact levels of clients and this will enable them to execute orders in the market on their behalf.
A single trader will not get direct access to a Level 1 liquidity provider. Their access to the forex market will be provided by an online broker

---------- Post added 25-02-2021 at 12:37 AM ---------- Previous post was 24-02-2021 at 08:27 PM ----------

The forex market is the largest financial market in the world in terms of liquidity and trading volume, reaching $ 6.6 trillion per day in April 2019, equivalent to 25 trillion Saudi riyals per day. Forex cannot be compared to any other financial market in terms of liquidity, for example: the New York Stock Exchange NYSE, which is the largest stock market in the world, does not exceed the size of