Alain Broyon CEO Dukascopy (Suisse) S.A.
Alain Broyon CEO Dukascopy (Suisse) S.A.

Marketplace

Alain Broyon and Dr. Andre Duka discuss One-click trading and the global liquidity structure.

First Published: e-Forex Magazine 25 / Marketplace / October, 2006

Dr. Andre DukaCTO, Dukascopy (Suisse) S.A.What drives the global FX industry? Is it dominated by large liquidity providers and institutions, or by traders in the market? To understand the relationship between participants in the FX market it is essential to investigate certain factors that impact the market – spread, liquidity, as well as human and technological limitations. One-click trading is the key tool in FX trading today. Billions of one-click trades around the globe affect the fine structure of FX global liquidity, simultaneously creating liquidity and testing its limits. These restrictions and corresponding challenges facing the FX industry in general, and marketplaces in particular, are subject of this article. Some important statistics regarding current FX global industry spreads, frequency of price update, human trader reaction and internet connection delays will be presented. In response to these factors, a few practical recommendations are proposed for traders who seek maximum trading...continued

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