The Role of Big Banks in Forex Trading
The forex market operates on a decentralized system, but big banks are at the core of its daily transactions. These financial giants provide liquidity, influence price movements, and execute large-scale trades that shape the currency markets. Unlike retail traders, who rely on brokers, big banks operate at the interbank level, where institutional transactions define the structure of Forex trading.
Liquidity Providers in the Global Currency Market
Big banks serve as primary liquidity providers, ensuring that currency pairs remain tradable around the clock. Their massive order flows facilitate smooth transactions for corporations, hedge funds, and governments, maintaining market stability. Without these institutions, spreads would widen, and price fluctuations would be more erratic.
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