Editing Retail foreign exchange trading
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{{Foreign exchange}} |
{{Foreign exchange}} |
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'''Retail foreign exchange trading''' is a small segment of the larger [[foreign exchange market]] where individuals [[ |
'''Retail foreign exchange trading''' is a small segment of the larger [[foreign exchange market]] where individuals [[speculate]] on the exchange rate between different currencies. This segment has developed with the advent of dedicated [[electronic trading platform]]s and the internet, which allows individuals to access the global currency markets. {{As of| 2016}}, it was reported that retail foreign exchange trading represented 5.5% of the whole foreign exchange market ($282 billion in daily trading turnover).<ref name=BIS>[http://www.bis.org/publ/rpfx16fx.pdf Triennial Central Bank Survey] (April 2016), Bank for International Settlements</ref> |
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Prior to the development of forex trading platforms in the late 1990s, forex trading was restricted to large financial institutions. It was the development of the internet, trading software, and forex brokers allowing trading on [[margin (finance)|margin]], that started the growth of retail trading. Today, [[Trader (finance)|traders]] are able to trade [[Spot price|spot currencies]] with [[market maker]]s on margin. This means they need to put down only a small percentage of the trade size and can buy and sell currencies in seconds. |
Prior to the development of forex trading platforms in the late 1990s, forex trading was restricted to large financial institutions. It was the development of the internet, trading software, and forex brokers allowing trading on [[margin (finance)|margin]], that started the growth of retail trading. Today, [[Trader (finance)|traders]] are able to trade [[Spot price|spot currencies]] with [[market maker]]s on margin. This means they need to put down only a small percentage of the trade size and can buy and sell currencies in seconds. |