Participants in the foreign exchange market

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From the ma Eastforexcashback body of cashbackforexbtc East forex cashback transactions, the foreign exchange forexcashbackcalculator is mainly composed of the following participants:   1, foreign exchange market makers (MarketMakers)   foreign exchange market makers mainly refers to the central bank or monetary authorities designated or authorized to operate foreign exchange business commercial banks cashback forex financial institutions it can be specialized in foreign exchange of the national bank, can also be Part-time foreign exchange business of the countrys banks or foreign bank branches in the country foreign exchange banks are the most important participants in the foreign exchange market, its foreign exchange transactions constitute the main part of the foreign exchange market activities, the daily foreign exchange transactions in about 1/3 of the transaction volume occurred between the bank and the bank large commercial banks may be trading for its investors, only to receive commissions, and not to earn the exchange rate difference for the purpose; also May be their own investment department in the foreign exchange market investment, to buy and sell the spread to obtain profits  2, foreign exchange broker  foreign exchange broker refers to facilitate foreign exchange transactions intermediaries, mostly trust companies, banks and other part-time institutions, but also companies and individuals specializing in this business it between foreign exchange banks, foreign exchange banks and foreign exchange market between other participants, on behalf of foreign exchange Buying and selling business foreign exchange broker must be approved by the central bank of the country in order to operate, generally divided into two categories: one is the general broker, that is, with their own funds to participate in foreign exchange transactions, self-sufficient, when the broker is a self-dealer; the other is to run the street broker, that is, on behalf of investors to buy and sell foreign exchange, only to collect the spread, do not assume any risk  3, foreign exchange speculators  foreign exchange Speculators of foreign exchange trading is not out of the actual needs of international payments and receipts, but the use of a variety of financial instruments, in the exchange rate changes to pay a certain margin to pre-buy pre-sale, earn exchange rate differential fund institutions are the real speculators in the market, their hands of money is commonly known as hot money these institutional investors in the market to call the shots, often attacking other countries currencies, once the most famous is Soros and his quantum Funds due to global mutual funds, trust funds, pension funds, arbitrage hedge funds and other foreign financial instruments need to be constantly repositioned to adjust their portfolios of foreign exchange assets fixed income, so these transactions usually involve a large flow of funds, the market exchange rate movements have a significant impact  4, the actual suppliers of foreign exchange and the actual demanders  in the foreign exchange market The actual suppliers and actual demanders of foreign exchange are those who use the foreign exchange market to complete international trade or investment transactions of individuals or companies they include: importers, exporters, international investors, multinational companies and tourists, etc.  5, central banks  Central banks are one of the main participants in the currency market, they are not foreign exchange speculators, their main purpose of entering the foreign exchange market is to Observe the market, control the money supply and exchange rate in order to maintain the stability of the national currency exchange rate, the central bank can also be directly involved in the foreign exchange market trading, adjust the supply and demand of funds in the foreign exchange market, so that the exchange rate is maintained at a certain level above or restricted to a certain level below the central bank usually set up a foreign exchange equalization fund, when the market demand for foreign exchange is too high, the exchange rate rises, the sale of local currency, recovery of foreign currency; when Market foreign exchange oversupply, the exchange rate falls, buy the local currency, put foreign currency Therefore, in a sense, the central bank is not only a participant in the foreign exchange market, but also the actual manipulator of the foreign exchange market a countrys government often through the central bank to observe economic activities, so as to maintain an appropriate money supply to achieve economic goals  The broad structure of foreign exchange market participants are as follows:  ; Individual investment relying on fund institutions to enter the Reuters quotation system trading  Individuals, small institutions relying on brokers relying on large international banks to enter the Reuters quotation system trading  Individuals, enterprises relying on small banks relying on large international banks to enter the Reuters quotation system trading  National governments relying on the central bank to enter the Reuters quotation system trading

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