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Why is there a price difference between exchanges?
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1 min read
14/11/2023
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Why is there a price difference between exchanges?

  1. Price Source: Trading platforms that use MT4 or MT5 do not create prices themselves. Instead, they obtain prices from Data Feed sources provided by liquidity providers.
  2. Liquidity Providers: There are 9 levels of liquidity providers. These providers obtain prices from banks and major financial institutions before sending them to the clear house.
  3. Open and Closed Markets: Exchanges around the world open and close at different times, which may result in price differences.
  4. Time and Economic Factors: Exchanges may open late on Mondays, and economic factors can influence prices.

    Price differences between different data feed sources are common and widespread in the financial markets, especially in forex.
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