The FX Market Structure
The traditional stock market operates through a centralized exchange (such as the NYSE or NASDAQ) where all orders are routed to a single location. Forex is completely different. It is a fully decentralized, over-the-counter (OTC) market with no single central exchange.
Stock Market
Centralized exchange. All orders routed to one place. Fixed trading hours. Physical building in New York City.
Forex Market
Fully decentralized. Electronic global network. 24/5 operation. No single location: it exists everywhere.
⚠️Why This Matters To You
Because the Forex market is decentralized, it operates on a strict hierarchy of power and volume. The top players dictate where price goes. If you don't know who the liquidity provider is at the table... you are the liquidity. Understanding this food chain is essential for survival.