Essential

Decentralised

A system or market operating without a central authority. The forex market and cryptocurrency networks are both decentralised.

Definition

Decentralised describes a system, market, or network that operates without a single controlling entity. The forex market is decentralised because it has no central exchange; trading occurs over-the-counter through a global network of banks, brokers, and dealers. Cryptocurrencies take decentralisation further by using blockchain technology to eliminate intermediaries entirely.

How It Works

The forex market operates through a network of banks, brokers, and electronic platforms rather than a single exchange
Prices can vary slightly between providers because there is no centralised order book
Cryptocurrency networks use distributed ledgers maintained by thousands of independent nodes
Decentralised systems are more resistant to single points of failure but harder to regulate

Trading Tips

Because forex is decentralised, prices vary between brokers. Compare quotes for competitive rates.

The lack of a central exchange means there is no official closing price. Different brokers may show slightly different candles.

Decentralised crypto exchanges (DEXs) offer trading without intermediaries but can have lower liquidity

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