No matter who you are, an individual trader or an investment professional, the foreign exchange market is the place where money can be found. Forex trading amounts to nearly $5 trillion per day. By comparison, the roughly $700 billion a day bond market and $200 billion a day in stock trading across the globe appear somewhat smaller in size. The entire everyday value of all the stock trading globally equals approximately one hour’s worth of trading in the forex market every day.
We will in detail see some major Forex Players in today’s article and get a detailed insight about them.
1) Forex Players – Banks
There are many different factions of players in the forex market. The biggest group of forex traders, when it comes to the total dollar value of trading that they account for, is constituted by commercial and investment banks. Banks perform a large amount of currency trading in place of their customers who are involved in global business and trade operations. These Banks also serve as the major market makers when it comes to forex trading and trade heavily in their accounts.
2) Forex Players – Governments
The second in number is the government when it comes to forex players. Through the central banks, Governments also become major players in the forex market. The central bank of any country often adopts big statues of buying or selling its currency so that it could control the currency’s comparative value. This will help them to combat inflation or to enhance the country’s balance of trade.
3) Forex Players – Companies
Comes in third place the “Companies”.
The companies like GCG International that operate globally are also major members when it comes to forex trading. Trading can go up to hundreds of billions of dollars yearly. Corporations use the forex market sometimes to stagger their main business undertakings in foreign nations. For example, if a company based in the US is performing a considerable proportion of business in Singapore, where it requires to conduct huge business transactions in the currency- Singapore dollars, accordingly it might sway against a decrease in the comparative value of the Singapore dollar by buying the currency pair Usd/Sgd (US dollar vs. Singapore dollar).
3) Forex Players – Traders
Another important individual in forex players is forex trader, These people speculate and trade the forex market seeking only investment profits. This particular section consists of professional investment fund managers to individual small investors, who arrive at the market with varying levels of skill, knowledge, and resources.
Learning Forex Trading –
If you want to learn forex trading know that the forex market trades variations in the exchange rate between two currency pairs, for example, the euro and the US dollar, which is stated as Eur/Usd. While quoting exchange rates, the first currency in the quotation is called the base currency and the second currency is called quote currency.
This article told you about the important terms and participants of forex trade. This will make your understanding of the forex market better.
Laila Azzahra is a professional writer and blogger that loves to write about technology, business, entertainment, science, and health.