Why is there a price difference between exchanges?
![#](/default/img-place-holder.webp)
1 min read
14/11/2023
16
0
0
Why is there a price difference between exchanges?
- 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.
- 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.
- Open and Closed Markets: Exchanges around the world open and close at different times, which may result in price differences.
- 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.
![#](/images/common/user-default.webp)