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Yesterday I was in Brisbane presenting to a group of people from around Australia, a number of whom had been my former pupils a number of years ago and are now trading to make money in a full time capacity. Among the list of core topics that I covered in my tutorial was interbank liquidity and price formation, of course some of the more experienced forex traders in the audience understood what I was talking about but it was surprising to see that allot of traders still don’t understand exactly how currencies are priced. In order to fill in the gaps I have written this concise review.

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