Tangible foreign exchange market

Tangible foreign exchange market

Tangible foreign exchange market, also known as the specific foreign exchange market, refers to the foreign exchange market with specific fixed places. This kind of market was first popular in the European continent, so its organizational form was called continental way.

Main characteristics of tangible foreign exchange market

First, fixed places generally refer to foreign exchange exchanges, which are usually located in financial centers around the world.

Second, both parties engaged in foreign exchange business conduct foreign exchange transactions within the specified time of each trading day. In the period of free competition, foreign exchange trading in western countries is mainly concentrated in foreign exchange exchanges. However, after entering the monopoly stage, banks monopolized foreign exchange transactions, which led to the decline of foreign exchange exchanges.