The currency booth at the airport is a market maker. I give them dollars, they give me euros. They don't make me stand around and wait for a European to complete the trade, though. (That would be more classified as an exchange.) They are always willing to buy or sell at some price. The currency desk is mostly looking out for their own interest, but when I step off the plane, I want somebdoy to be there to sell me euros.
When George Soros decides to sell a billion British pounds, that's a prop trade. He's not hanging out letting the trades come to him.
(I say currency booth, not exchange, just to avoid confusion. We usually say exchange, because that's what happens, but it's not an exchange in the market sense.)
When George Soros decides to sell a billion British pounds, that's a prop trade. He's not hanging out letting the trades come to him.
(I say currency booth, not exchange, just to avoid confusion. We usually say exchange, because that's what happens, but it's not an exchange in the market sense.)