Definition – What does Retail Forex Market mean?
The retail forex market refers to the currency trading activities of all the non-institutional traders, businesses, investors and other organizations. Owing largerly to the introduction of online trading, the costs associated with trading foreign currencies have fallen sharply. Many businesses and individual traders have entered the retail forex market through online brokers rather than trading through bank desks or other proprietary trading firms.
ForexTerms explains Retail Forex Market
On any given day, the vast majority of market action is made up of trades by retail traders. Although all trades, including those of institutional traders, occur in the same global forex market, the retail traders increased activity is seen as distinctive enough to appear like a whole other market within the larger forex market. Whether true or not, the general perception is that retail traders are responsible for day-to-day noise, whereas institutional trades move the longer-term market trends.
