5. Conclusion
During the recent decade, the popularization of electronic trading in an FX market enables researchers to access tick-by-tick transaction data and assist in developing a microstructure approach to an FX market. This approach emphasizes the crucial role of order flows during the price discovery process of an FX market. Order flow is a conduit through which relevant information is transmitted to an FX rate. Thus, order flow contains information and is a predictor of future FX rates. Given the predictability of order flows, I measure the efficiency in an FX market.
