The foreign-exchange market is most likely shifting towards electronic trading for the purpose of ________.

Question

Quizplus · Accepted Answer

The shift towards electronic trading in the foreign-exchange market is driven primarily by the goal of reducing transaction costs. Electronic trading platforms offer greater efficiency and transparency, which can help to lower bid-ask spreads and other expenses associated with traditional trading methods. While electronic trading can also help to discourage speculators, establish more hard currencies, and meet international requirements, these are not the primary drivers of the shift towards electronic trading.

The Foreign-Exchange Market Is Most Likely Shifting Towards Electronic Trading