forex market

Find out who is involved in Forex market trading?

Find out who is involved in Forex market trading?

Forex traders may wonder who participates in the Forex market, the answer is that there is a buyer and there is also a seller and he finds a specific product for sale in the Forex market, but what does the trader want more. Perhaps he can look at this in a slightly different way and require a more specific and in-depth research to get to know who these traders are or who exactly the organizations are based on that.

The Forex market for foreign exchange is a private world in its own right, with a special and diverse group of traders who are individuals like us, and up to a certain network of large trading companies and investment banks participating in the Forex market, which is large by the way.

As they are creating special affairs for international trade to do Forex trading in all different economic fields, which may eventually become a huge market specialized in currency rates that are traded through the Forex market.

As a matter of fact, there can be a certain regulation for the traders who participate in trading in the Forex market


Forex market participants

Very interesting fact: does one know that until not so long ago, only large financial institutions and companies were always allowed to trade in Forex? Where the first trading condition was that individuals could not trade Forex unless they had an amount ranging from ten to fifty million to begin with.


Who exactly are the participants in the Forex market?

Without always some ado, but let’s get to know clearly who specifically participates in the Forex market:

  1. Retail giant and big banks

Always at the top of the ladder in any market, specifically the Forex market, where the largest investment banks are located, which are collectively known under the name of a specific market, which is between large banks or financial flow institutions.

They are large banks and are responsible for most of the trading volume of the Forex market in foreign exchange transactions and include many large banks in the Forex market. In the past, it was considered one of the specific and influential banks in the Forex market.

Because they take that large amount of important transactions for the Forex market during every Forex trading day for all clients.

And if we take a close look at such statistics that show what is the volume of trades that are monthly to be traded in the Forex market between large banks, this usually appears in the Forex spot market.

Depending on the size of the supply of Forex deals and the demand for them and on foreign currencies found in the Forex market, so the giants of those banks that entered the Forex market are the ones who determine the volume of supply and demand for deals, and this contributes to the spread of the exchange rate for certain currencies that some traders may like and hate some.

In addition, it is known that those large banks also participate in the Forex trading market for free foreign exchange in order to control their control over currency exchange rates within the Forex market, which have this great impact on the so-called exchange rate movements of the various patterns.

For example, we find that there will be federal reserve banks that have made important efforts to achieve a certain stability in a currency to equal certain interest rates in transactions on other currencies in the market and affected by the exchange rate of the Forex market.


  1. Big trading companies

Next in the special list in the Forex market is what is known as hedge funds, followed by investment funds, trading companies, retail Forex market makers, certain brokers for Forex trading offices, Forex market brokers, and with them, communication networks with the retail market.

Such companies usually participate in the Forex exchange market to achieve certain purposes for the practice of trading business, and usually trade and exchange occur in currencies that are different and distinctive at the same time as speculative deals.

For example, a large company has purchased spare parts for some particular equipment exclusively from a different manufacturer country, here the company must perform an exchange of currencies, which here in this situation is the currency of the car company against the currency of the country of the manufacturer of the spare parts purchased.

And since the trading volumes of such companies are much smaller than the volume of trades that exist in a large market between one bank and another, here they generally have to conduct their transactions through trading banks by regulating the so-called forward contract in trading Forex.

This means that the prices are slightly higher and relatively more expensive than those Forex traders who are a large part of the Forex market.


  1. Retailers

Individual traders in the Forex market are small market individuals, representing only 5.5% of all transactions in the foreign exchange market.

But one should not miss something important. Although the presence of retail Forex traders may fall at the bottom of the Forex trading ladder, they trade Forex deals with large amounts of money and have this important impact on the sentiment of the Forex market in determining the exchange rate of the Forex market.

However, retail Forex traders have to go through a special series of longer trading transactions in order to gain liquidity in the Forex market, and as such, they often do not receive the same costs in transactions that occur as participating in the Forex hierarchy.

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