scholarly journals FX Trading... LIVE! Dealer Behavior and Trading Systems in Foreign Exchange Markets

Author(s):  
Geir Hoidal Bjonnes ◽  
Dagfinn Rime
Author(s):  
Martin D. D. Evans ◽  
Dagfinn Rime

An overview of research on the microstructure of foreign exchange (FX) markets is presented. We begin by summarizing the institutional features of FX trading and describe how they have evolved since the 1980s. We then explain how these features are represented in microstructure models of FX trading. Next, we describe the links between microstructure and traditional macro exchange-rate models and summarize how these links have been explored in recent empirical research. Finally, we provide a microstructure perspective on two recent areas of interest in exchange-rate economics: the behavior of returns on currency portfolios, and questions of competition and regulation.


2011 ◽  
Author(s):  
James O'Connor ◽  
James Wackett ◽  
Robert Zammit

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