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    The Anatomy of The Forex Market - Pepperstone Infographic

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    Pepperstone is a global provider of online trading services, specializing in foreign exchange (forex or FX). Successful traders and investors understand that superior technology and low trading costs hold the key to greater returns. Pepperstone provides access to fair, competitive and transparent pricing across all major currency pairs by equipping traders with best-in-class trading technology and customer service. The company is based in Melbourne, Australia. http://pepperstone.com

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    The Anatomy of The Forex Market - Pepperstone Infographic

    Uploaded by

    admin2919
    438 views1 page
    Pepperstone is a global provider of online trading services, specializing in foreign exchange (forex or FX). Successful traders and investors understand that superior technology and low trading costs hold the key to greater returns. Pepperstone provides access to fair, competitive and transparent pricing across all major currency pairs by equipping traders with best-in-class trading technology and customer service. The company is based in Melbourne, Australia. http://pepperstone.com

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    The Anatomy of the Forex Market | Pepperstone Infographic

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    Pepperstone is a global provider of online trading services, specializing in foreign exchange (forex or FX). Successful traders and investors understand that superior technology and low trading costs hold the key to greater returns. Pepperstone provides access to fair, competitive and transparent pricing across all major currency pairs by equipping traders with best-in-class trading technology and customer service. The company is based in Melbourne, Australia. http://pepperstone.com

    Copyright:

    Attribution Non-Commercial (BY-NC)
    Download as PDF, TXT or read online from Scribd
    Download as pdf or txt
    438 views1 page

    The Anatomy of The Forex Market - Pepperstone Infographic

    Uploaded by

    admin2919
    Pepperstone is a global provider of online trading services, specializing in foreign exchange (forex or FX). Successful traders and investors understand that superior technology and low trading costs hold the key to greater returns. Pepperstone provides access to fair, competitive and transparent pricing across all major currency pairs by equipping traders with best-in-class trading technology and customer service. The company is based in Melbourne, Australia. http://pepperstone.com

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    of 1

    ANATOMY OF THE IN APRIL 2010 THE AVERAGE TURNOVER

    OF THE FOREX MARKET REACHED


    FOREX MARKET >> $4 TRILLION PER DAY >>
    Source: King, M. R., & Rime, D. (2010). The $4 trillion question: what explains FX growth since 2007 survey?
    BIS Quarterly Review, Dec, pp. 27-42.
    US$ Billion
    Japan 43
    Australia 32

    USA Denmark 17
    US$ 168 billion Singapore 16
    Hong Kong 10
    Canada 4.6
    India 4.1
    Brazil 2.9

    In April 2010 the daily average


    Forex market turnover topped
    $4 trillion. 85% of this volume
    was largely down to high-
    frequency traders, banks and
    UK retail investors trading online.
    US$ 214 billion This was 20% higher than in
    2007.

    2008 Lehman’s collapse

    Spot Forex Volume By Country


    Source: 2010 Triennial Central Bank Survey

    Algorithmic (automated) trading has shown


    strong growth from 2% in 2004 up to 45% in
    2010. This has boosted the growth of multi-
    bank platforms.

    10
    0 20
    08
    Barclays’ FX Liquidity Index
    20
    09
    80 98 EURUSD
    % USDJPY
    20
    10 GBPUSD

    60
    28 Following the bankruptcy of Lehman Brothers many
    %
    financial institutions experienced a sharp rise in
    72 volatility and drop in liquidity. With limited market
    %
    40 liquidity many investors across various asset classes
    turned to the Forex Market to hedge risk.
    45
    %
    55
    % Average Trade Size

    Automated Trading
    Manual Trading

    Growth of algorithmic trading


    Sources: CME; EBS; Greenwich Associates.

    Algorithmic High Frequency Trading is push-


    ing Forex Market turnover higher. Evidence of
    the increase can be seen with the rise of trade 2005 Average Number of Trades 2009
    frequency and the reduction in trade size.
    Evidence of high-frequency trading
    Source: Survey by New York FX Committee

    Pepperstone is a leading global provider of online


    Pepperstone trading services, specialising in foreign exchange.
    www.pepperstone.com

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