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Forex market microstructure is used to describe the inner workings of the forex market, which are not inherently visible to the trader but will ultimately impact the price direction. It includes transaction types, how prices are made, order types, the behaviour of market participants etc. These all come together to move the currency pairs or other assets in one direction or the other, and by a certain degree.
Forex market microstructure refers to the way that foreign exchange (forex) markets are structured and how they function. It includes the various actors and mechanisms that contribute to the functioning of the market, as well as the various factors that influence the supply and demand for different currencies.microstructure refers to the way that foreign exchange (forex) markets are structured and how they function. It includes the various actors and mechanisms that contribute to the functioning of the market, as well as the various factors that influence the supply and demand for different currencies.