The foreign exchange market consists of market makers, their clients, and intermediaries such as interbank market platforms and liquidity aggregators.


OTC market Business Model Generation
Let`s summarize the interim results…

Please note that there is no single trading platform on the foreign exchange market where everyone who wants to buy or sell currency would gather. These markets are called over-the-counter (OTC) markets.

I know from my own experience that the concept of the OTC market can be strange. For the uninitiated person, the financial market is primarily a stock exchange where all traders gather, something like a barge from Dunno on the Moon. It took me a while to realize that the market may well operate on the basis of bilateral agreements between participants, who do not have to gather in one building for everyone, or, in terms of the 21st century, connect to a single trading system.

Foreign exchange market

So the foreign exchange market is more of a communication channel connecting market makers with customers and with each other, rather than a particular building with columns in the center of the city. You can experiment: Google photos of the New York Stock Exchange (NYSE) or Chicago Mercantile Exchange (CME), and then type in "Foreign Exchange" into a search engine.

Currency exchanges

However, there are currency exchanges, and in some countries, they account for a significant part of transactions. Read more: