The Major Player in Foreign Exchange

The major players in the Forex market arena are commercial banks, investment banks, central banks, trading institutions, hedge funds, corporations, and individual investors.

Commercial and investment banks are the natural players in Forex. Currency trading started to be an additional service to commercial banking business, deposits and loans. The commercial and investment banks are in the market on behalf of both customers and themselves.

Central banks are different type of player. They are not in the market for money and they are in fact nonprofit organization. Their main purpose is to provide satisfactory trading condition and direct the domestic monetary policy and maintain the stability of the national currency of its country.

Hedge funds mainly research potential investments in the markets worldwide and focus the capital on one or few instruments only. The international investment opportunities increase when more funds are entering the currency markets.

The internationalization of business and increase in competition force corporations to keep an eye on at Forex. Corporations surpass their commercial needs and take speculative positions, as opportunities occur.

Individual investor access Forex hoping to make money by exploiting the movement of a currency pair.

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