In order to facilitate the understanding of traders entering the foreign exchange market, let us first look at the market that you are probably very familiar with: the type of stock market structure, the stock market is a centralized trading market, and the buyer and seller need to trade through a stock exchange franchised broker
Due to its nature, the stock market has a very strong monopoly. There is only one entity, a price-controlled securities broker, and all traders must trade through this broker. In view of this, prices can easily move towards Facilitate the change of the broker’s side, not the trader’s side.
How did this happen?
The structure type of foreign exchange market transaction mode—Yuhui International.
In the stock market, brokers are forced to fulfill their customers’ orders. Now, if the seller of stock suddenly exceeds the number of buyers, because the broker is forced to execute the order, it may be difficult for the seller holding a large number of stocks to sell the stock held to the buyer. In order to avoid this phenomenon, the securities broker only needs to widen the transaction spread or increase the transaction fee to avoid the seller from entering the market. In other words, the broker can manipulate the price of the stock it sells to meet its demand.
The spot foreign exchange market is a decentralized trading market. Unlike the stock or futures trading market, you do not need to enter a centralized market such as the New York Stock Exchange. There is no single price at any time in a currency. It means that the quotation varies for different currency traders.
The foreign exchange market is so large, and the competition between traders is so fierce that you can get the best quote at any single moment.
At the same time, another exciting thing in the foreign exchange market is that you can conduct foreign exchange transactions anywhere.