How Forex Rebates Work

What is the difference between retail foreign exchange trading and foreign exchange options trading


After the f bestforexrebateratesancial crisis in 2008, the strengthening of global financial regulation led to a continuous slide in the cashbackforexreview How Forex Rebates Work premiumrebateforex business cashback forex, with increased volatility in the foreign exchange market, as well as the foreign exchange market gradually HowForexRebatesWork the new regulatory regulations grinding, the retail foreign exchange business in January 2016 once signs of recovery However, a comprehensive foreign exchange transactions in the first three quarters of 2016 Retail foreign exchange business is still in the dark data show that in July 2016 the U.S. retail foreign exchange customer assets increased by 0.94% over June to $511 million, for the third consecutive month more than $500 million, but less than the same period in 2015 578 million U.S. dollars in April 2016, the U.S. retail foreign exchange customer assets had fallen below $500 million, for the first time in seven years  In the 2013 TriennialSurvey, the Bank for International Settlements (BIS) for the first time retail foreign exchange trading volume as a separate category 2016 TriennialSurvey released in September 2016, the global average daily spot foreign exchange trading volume remained stable between $2 trillion and $2.1 trillion per day of which, the average daily retail foreign exchange trading volume of more than 200 billion according to the three-year survey, the average daily volume of retail foreign exchange transactions from $185 billion in 2013 to $238 billion in 2016, after the average daily volume of retail foreign exchange transactions estimated by the agency reached a peak of $415 billion in 2012 The retail foreign exchange market, also known as the customer market, refers to the act and place of buying and selling foreign exchange between banks and individual and corporate customers Banks in foreign exchange transactions with customers play an intermediary role, on the one hand, from the hands of customers to buy foreign exchange, on the one hand, and foreign exchange sold to customers, from which to earn foreign exchange trading spread, but also the bank to provide foreign exchange services to customers business, is the basis of the existence of the foreign exchange market is worth noting that the foreign exchange retail business and foreign exchange futures, as well as the use of leveraged transactions, equivalent to forward contracts through the margin way to trade & nbsp nbsp;Although the foreign exchange retail business in recent years trading has been slippery, but also has its own unique appeal retail foreign exchange market direction depends mainly on volatility, despite the existence of many restrictions and strict regulation, the retail foreign exchange market remains active, the current global daily trading volume of more than 282 billion U.S. dollars Specifically, the foreign exchange retail business has three models: agent model, the principal model and market-maker model, in which the agent model is mainly compressed buying and selling spreads to collect commissions, principal model does not charge commissions but to provide customers with a larger spread and gain revenue, market-maker model does not charge commissions nor earn spreads, but both to provide customers with foreign exchange contracts and do customers transactions Counterparty, not locking in the risk exposure, through the transaction to obtain the spread and liquidity gains