Personal Finance & Money Asked on December 17, 2020
For stocks, which I am familiar with, some stock brokers provide access to level 2 data from NYSE and NASDAQ. Level 2 data is also available for some OTC stocks. I am now exploring the foreign exchange market, and I tried to look for “level 2 data for forex”, but I am confused:
Some foreign exchange brokers provide real-time access to the order book (depth of market), showing every bid price, bid quantity, ask price, and ask quantity placed by market participants.
From my understanding, foreign exchange is also traded over-the-counter. Many trading locations exist, and the forex broker executes the trade on one of these trading locations.
The questions are:
Retail forex brokers generally lay-off their order imbalance to large banks that make an institutional forex system. So retail forex is based on an institutional forex banking system.
Answered by S Spring on December 17, 2020
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