All you need to know about interbank forex trading, Prime Brokerage, liquidity providers, HFT, algorithmic trading, FIX API protocol, and much more!

INTERBANK MARKET EXPLAINED

An interbank market is a trading exchange where the largest banks trade and create the prices of a security directly between themselves. The largest such market, and at the same time the largest market in the world is the currency market better known as the foreign exchange market (FOREX). Read more about how the forex interbank market works right here!


HOW TO SELECT A PRIME BROKERAGE AND THEIR ROLE

​As a large financial institution or high volume individual trader, you may need to select a prime brokerage firm. A Prime brokerage may be described as an organization that facilitates financial transactions for special clients such as the lending of securities, cash management services, leveraged trading services, and other services. Explore how to select a prime brokerage and their role right here!


LIQUIDITY PROVIDERS EXPLAINED

​​In the forex market, liquidity providers are often banks, financial institutions, and brokers also known as market makers. Liquidity provider increases the liquidity of the market by connecting the brokers and traders for settling the trading transactions.  A higher liquid market is desirable in order to reduce the cost of trading because the higher liquidity causes the spread to squeeze.


WHAT IS ALGORITHMIC TRADING?

Algorithmic trading is an advance trading system that makes use of conceptualized formulas and mathematical models so as to provide very fast and effective decisions. Algorithms are used by the biggest financial institutions as well as individual forex traders. Read more about Algorithmic trading right here!


HIGH FREQUENCY TRADING (HFT) EXPLAINED

​High Frequency Trading is an algorithm that once some parameters are met, the software buys or sells a specific financial activity such as spot forex, shares, options, etc. HFT do it all at a very high speed (not in seconds, but in milliseconds). Explore more about HFT right here!


INTEGRAL FX INSIDE TRADING PLATFORM

One of the largest liquidity aggregators. This means that a trader is able to compare different prices from different liquidity providers (banks or other financial institutions) like Goldman Sachs, JP Morgan, Citibank, Deutsche Bank, UBS, and others. Explore ​why Integral FX platform has become one of undisputed leaders in the market.


CURRENEX: THE BEST FX AGGREGATOR

​Currenex ECN is an interbank trading platform that combines or aggregates the capabilities of several liquidity providers into one platform and allows traders to choose their preferred liquidity source. The prime assets that are traded on Currenex ECN are stocks and currencies for which there is a separate technology to monitor operations. Read more about Currenex ECN trading platform right here!


LIQUID X TRADING PLATFORM

Advance electronic exchange platform that allows individual participants, banks and other financial institutions to trade finance assets at a single API. It was established in 2015 and is headquartered in New York, US. This is a one of its own kind platform that aggregates liquidity from different liquidity providers. Explore more about Liquid X trading platform right here!


HOTSPOT FX ECN TRADING PLATFORM

​Hotspot FX is a top quality Forex aggregator and ECN trading platform primarily designed for institutional Forex traders. ​The award-winning Hotspot FX ECN platform aggregates prices from a wide range of the biggest financial institutions trading on the interbank market.


FIX API PROTOCOL EXPLAINED

​FIX protocol is a messaging standard for sharing and exchanging the financial information among the market participants that includes banks, investment funds, exchanges, brokers, investors and other financial institutions. Read more about how FIX API protocol works and its advantages right here!


FOREX VPS EXPLAINED

A virtual private server (abbreviation VPS) is a virtual space and machine that can be rented for a monthly fee and used for different purposes. Basically, it’s a virtual computer that you can rent and use it for your needs. ​In most cases, FOREX traders use a VPS to run an automated trading strategy (so-called  “FOREX robots” or algorithms). Explore the advantages of using the VPS for forex trading right here.


FOREX SCALPING


Forex scalping is based on the concept of trading currencies using real-time analysis so as to acquire profitable returns even from small price changes. To become a scalper, the trader should have precise exit strategy as one huge loss can easily eliminate several small profits that you might have obtained. Read more right here about forex scalping!