A decentralised market
Foreign exchange has no single central exchange. Banks, institutions, corporates and retail brokers trade through an interconnected network, which is why quotes can differ marginally between providers.
Retail traders access this market indirectly, through a broker that aggregates pricing from liquidity providers.
Why currencies move
Currency values reflect relative expectations about growth, inflation and interest rates between two economies, alongside flows from trade and investment.
Key takeaways
- No central exchange
- Quotes are always relative between two currencies
- Retail access is via a broker
Trading leveraged products carries significant risk. This content is educational and is not financial advice.