Definition

OTC Market

Over-the-counter — no central exchange. Each broker shows their own version of the market sourced from their liquidity providers.

Full Explanation

Forex is an OTC market, meaning there is no single centralized exchange where all participants see the same order book. Trades happen across a fragmented network of banks, institutions, electronic trading networks, and retail brokers. Your broker shows you their version of the market — the specific spread you see, the price you fill at, and the liquidity available to you can differ from what a trader at another broker sees. The differences are usually small, but they are real. The mechanics described in this framework are universal — absorption, relocation, aggression, liquidity all work the same way regardless of broker. The specific numbers vary.

In the Book 2 chapters

Chapter 1 · The Mechanics

The Two Price Reality

The number on your chart is not the price of the market.

Chapter 4 · The Mechanics

The Living Order Book

There’s a belief that floats around trading communities, stated so often it’s become assumed wisdom: if a level has been tested multiple times, it’s getting weaker. The idea is that each visit to a level chips away at the liquidity sitting there — buyers or sellers getting used up — and eventually there won’t be enough left to hold, and the level breaks.