You already know the entire structure of the Forex market, now we're going deeper to see exactly who is involved in this market ladder. It's necessary for you to understand the forex spot market, and who are the main players.
Until the late 1990s, the only major he can participate in this market. The original request to conduct transactions only if you have $ 10 to 50 million! Forex is directed to the use by banks, large corporations, and not for the "little people". However, due to the development of the internet, online forex companies can provide financial account transactions for small investors like us.
These are the players in this market:
1 Super bank:
As we all know, the spot Forex market is a decentralized market, so the biggest banks in the world would the currency exchange rate. Based on the supply and demand for money, they agreed collectively make buying and selling a difference deviation (spread)
The big banks, collectively known as the interbank market include banks such as UBS trade, Barclays Capital, Deutsche Bank and Citigroup. You can say that the interbank market is the foreign exchange market.
2.-largest trading company
The company occupies one part of the foreign exchange market is to serve the purposes of their business. For example, Apple must move dollars into yen Japaness when buying electronic equipment from Japan for their products. Due to the volume of their currency transactions so much smaller than the inter-bank market, market participants such as Apple agreement transactions with commercial banks.
The purchase, sale or merger (M & A) among large companies can also create fluctuations in currency exchange rates. Especially the non-M & A International, the debate on monetary happened can alter rates around.
3 State Bank and central banks
State Bank and central banks, as the European Central Bank, Bank of England and the Federal Reserve, also related to the Forex market. As well as commercial companies, government organizations are involved in the forex market to support the operation, payment transactions and manage the international foreign exchange reserves of them.
The central bank's impact on the Forex market as they adjust interest rates to control inflation. With this action, they can change the value of the currency. In addition, they also have the ability to intervene directly or through a press conference on the Forex market as they want to hold the exchange rate. Sometimes, central banks think their currency is priced too high or too low, and they begin trading activities in large numbers to change the exchange rate.
4 The speculation
"Opposite to win"
This may be the mantra of speculators. Including nearly 90% of total trading volume, speculators involved with all the forms and sizes, and they all come with Forex simply increase its budget.
