Foreign Exchange Market Types

Over-the-counter (OTC)
It is composed of commercials banks, investment banks, others financial institutions and corporations. Each bank has a separate forex trading room. They are surrounded by telephones and terminals displaying up-to-date information. Most of the forex activities take place in this market. This market caters to both wholesale and retail clients.

Exchange-Traded
Security exchanges trade in certain types of forex instruments such as futures and options. The dealing is done through stockbrokers.
Dealers can trade foreign currency through voice brokers, electronic brokerage services and directly with other dealers. Internet trading of forex is increasing. Many large newspapers quote exchange rates daily.

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