Most Profits or Losses on FX Trading for FIs Come

question 6

True/False

Most profits or losses on FX trading for FIs come from market making-the bid-ask spread-or from acting as agents for retail or wholesale customers.Revenues from taking an open position or speculating in currencies generally provide only a secondary or supplementary revenue source.

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Definitions:

Level of Significance

A threshold used in hypothesis testing to determine if a result is statistically significant, often represented by the alpha (α) level.

Population Proportion

The ratio of members in a group to the entire population that share a particular characteristic.

Alternative Hypothesis

In hypothesis testing, the hypothesis that proposes a difference or effect, contrary to the null hypothesis, which implies no effect or difference.

Null Hypothesis

A statement or assumption that there is no effect or no difference, and it serves as the starting point for statistical testing.