Where is the central location of the foreign exchange market?
FX trading is not centralized on an exchange, as with the stock and futures markets. The FX market is considered an Over the Counter (OTC) or “Interbank” market, due to the fact that transactions are conducted between two counterparts over the telephone or via an electronic network. Global Capital uses an institutional platform to execute forex transactions. This platform benefits our investors by providing us improved pricing over a retail forex platform and the ability to effect much larger trades due to increased liquidity. This increased liquidity is an important element in our investment strategies since it works to minimize our cost structure. This is an advantage over traders using retail platforms to access the far reaches of the forex market, with their higher costs.
