Abstract
The retail foreign exchange (forex) market is one which is only just starting to become a focus of research. Importantly, while it shares similarities and linkages to the more well-known institutional spot forex market, there are some key differences. These variations allow for a more concentrated arena in which to observe speculative activity. This paper documents the major features of retail forex trading and how it relates to the institutional market. It also examines the market participants and their behaviour. In doing so it provides a reference point for those not familiar with retail forex and introduces some potential areas for research development.
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