The Importance of Forex Liquidity

“the forex market has become more liquid due to higher frequency trading”

When the forex market was in its infancy, it was limited to central banks, hedge funds, mutual funds, and large corporations. This resulted in a lower liquidity ratio for the overall market. However, nowadays the forex market has become more liquid due to higher frequency trading. On a daily basis, a total volume of around 3.5 trillion dollars is traded.

The liquidity in this market is available when the economies with the greatest value are open (London, USA, and Tokyo). While these markets are open there will always be participants in the market that are ready and waiting to trade the world’s most popular currencies. The forex market is open from Sunday at 4:00 EST and closes at the same time on Friday. Since the market is constantly open during this time, the trades can jump into the market and benefit with a higher liquidity due to high impact events in these economies.

A broker’s liquidity is extremely important when a trader is about to start operations. Tradeview Markets has a top-tier liquidity offer with no intervention with the prices, the bank/liquidity provider executions, or the client, avoiding conflict of interests.

Tradeview Market’s liquidity is taken by approximately 50 institutional banks, which gives the client the best offer in spread and prices. Under these circumstances, Tradeview Market’s clients will be able to obtain institutional conditions.

Demar Ruiz
Demar Ruiz
Business Developer
druiz@tvmarkets.com