By Investment U Research Team Most new investors aren’t familiar with the interbank market unless they’re focused on forex. Unlike exchanges, forex is an over-the-counter market. This means that there’s no one central source of truth for the price of a security. And it’s the governing body for the forex market. It’s what dictates the price an investor receives when they decide to open a forex position.
The interbank market is exactly what it sounds like. It’s a collection of major banking institutions that facilitate the exchange of currency among themselves. In doing so, they also set the exchange rate and interest rates on certain …read more
