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Market Structure

Interbank

The wholesale currency market where major banks trade directly with each other.

Full Definition

The interbank refers to the network of banks that trade currencies among themselves at wholesale rates, forming the backbone of global forex pricing. Interbank transactions are typically large, starting at $1 million or more. The rates established in this market serve as the reference point for all retail forex quotes. Retail traders access interbank liquidity indirectly through brokers.

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