The foreign exchange (FX) market is the largest and most liquid financial market in the world. It operates not as a centralized physical exchange, but as a decentralized, over-the-counter (OTC) network of electronic systems, interbank brokers, and institutional ledgers. Market liquidity is structured across a strict institutional hierarchy:

[The Global FX Market Hierarchy]
  |- 1. Interbank Tier ---> High-volume electronic brokering platforms (EBS, Reuters); tightest spreads
  |- 2. Corporate Tier ---> Multinational enterprises, hedge funds, and asset management desks
  |- 3. Retail Perimeter -> Electronic broker platforms and retail currency exchange counters

At the core of the market is the interbank tier, where large global investment banks trade currencies directly with one another in massive volumes. This wholesale tier relies on electronic brokering platforms to clear trades instantly, establishing the benchmark global exchange rates that cascade down to corporate and retail users.