What are the main players in the group?
Market participants mainly include central banks, commercial banks, non-bank financial institutions, broker firms, dealers and large multinational enterprises.
They trade frequently and for huge amounts of money, each transaction worth millions, even more than tens of millions of dollars.
According to the purpose of their trading can be divided into investors and speculators.
There are many participants in the foreign exchange market.
In order to better understand the main activities of the foreign exchange market, the participants of the foreign exchange market can be generally divided into the following categories: 1. Foreign Exchange banks It is the main body of the foreign exchange market, about 90% of the foreign exchange transactions are conducted between foreign exchange banks.
Foreign exchange banks are commercial banks and other financial institutions whose activities are approved by the central bank.
Our main business includes negotiation, foreign exchange deposit and loan, foreign exchange guarantee, consultation and trust, etc.
Securities advisory agencies, newspapers, voice services, broadcasting, telecommunications network industry also participated in some advisory information services.
The rapid development of the global Internet has also laid a foundation for the further development of the foreign exchange market.
2. Foreign Exchange brokers are intermediaries who specialize in introducing foreign exchange transactions and facilitating transactions between buyers and sellers.
Foreign exchange brokers fall into two categories.
One is the average broker, who uses his own money to mediate transactions and bear the losses.
The other is called a street broker, commonly known as a broker.
They do not engage in foreign exchange trading activities and buy and sell foreign exchange on behalf of clients on a commission basis for providing information.
3. General customers refer to enterprises, institutions and organizations other than foreign exchange banks in the foreign exchange market.
They are the initial suppliers and final demanders of foreign exchange, such as enterprises engaged in import and export trade, enterprises engaged in transnational investment, enterprises paying foreign currency debts, and individuals who need to remit money.
The foreign exchange trading activities of ordinary customers reflect the substantial supply and demand relationship in the foreign exchange market.
While this trade is a small proportion of the foreign exchange market, it has a real impact on a country’s national economy.
4. Foreign Exchange speculator Foreign Exchange speculator is a market participant who makes speculative profits by predicting the trend of rise and fall and taking advantage of a certain time difference.
Currency speculators have no real need for currency, such as to adjust their positions or pay down debt.
They engage in forex trading purely in search of opportunities that may profit from market obstacles, which are hidden and difficult to find.
5. Central Banks Central banks are special players in the foreign exchange market.
It is not engaged in foreign exchange trading for profit, but to supervise and manage the foreign exchange market, to guide the direction of exchange rate changes, so that it is conducive to the implementation of domestic macroeconomic policies or in accordance with the requirements of international agreements.
The Fed may step on the accelerator as global central bank resolutions come thick and fast.
Please pay attention to the specific operation, the market is changing rapidly, investment needs to be cautious, the operation strategy is for reference only.
