The participants of the forex market.

The first thing to understand what actually is a forex market is essentially a virtual exchange that brings together all the existing foreign exchange markets.

Association is due to the fact that the forex dealing centers to increase liquidity using different markets or create their own marketplaces. Someone had entered into agreements with several major banks, while others just go on the interbank currency exchange, and others use international exchange.

That is why the circle of participants in the forex market is quite wide and diverse, but still there are several major categories.



Forex market participants - the layout makers, and national central banks, large corporations, dealing centers, traders said. They are all in varying degrees affect the demand and supply of currency, and thus form the market rate.

• Market Makers - the biggest players in their role can act as national banks and major corporations as well as individual traders. An example is George Soros, who was able to bring down the British pound. The main feature of the market maker is its ability to influence the exchange rate by buying or selling large amounts of it.

• Central banks - the main task of the foreign exchange market is the regulation of the national currencies, they can act both as buyers and as sellers, depending on what you need to do - to strengthen the currency, or vice versa to reduce its rate.

• Dealing centers - middlemen who organize dealing, sometimes turns up to several hundreds of billions of dollars a month. Therefore, despite that fact that these members are extremely speculative trading is impossible not to appreciate their impact on the currency market.

• Traders - for the most part these are small traders with deposits of more than a few hundred dollars, but there are also major investors, which have in the back of billions of dollars.

Forex market is quite complex and multi-faceted, for this reason, so do not just make a precise forecast of the trend, it is not known which of the parties or any of the events will impact most on the current situation.