Forex Market Trades And The Participants
The forex market is about investing your money to trade between countries. The foreign exchange market when traded between counties, usually involves a broker or financial trading company. Many people participate and want to learn forex market, which is similar to stock market. However, the foreign exchange is much bigger and comprehensive than the stock market trade. Much of the trade in FX (forex) takes place between banks, governments, brokers and a small number of operations in many other countries. The financial market and financial conditions are elements that play an important role as they make any forex market trading go up or down. Millions of people daily are involved in forex trading both between large countries and smaller countries.
Studies in recent years showed that the most transactions in the foreign exchange market are made between banks and this is called Interbank. Banks make up about 50 percent of trading in the forex chart market. Therefore, if banks are widely using this method to make money for shareholders and improve their own business, you know that the money should be there for retail investors, fund managers, which are used to increase the amount of interest paid on accounts. These banks trade money on a daily basis to increase the amount of money they have. Overnight a bank invest millions in foreign exchange market so the next day, they are able to make money, which is readily available to the public in their savings, current accounts, etc.
Commercial companies are also active in trading foreign exchange markets. Commercial companies such as Deutsche bank, UBS, Citigroup, and others such as HSBC, Braclays, Merrill Lynch, JP Morgan Chase, and still others such as Goldman Sachs, ABN Amro, Morgan Stanley are active in the foreign exchange market in order to increase their shareholder wealth.
Central banks are banks that have an international role in foreign market. Money supply, the availability of money and interest rates are controlled by Central banks. Central banks play an important role in the forex market; Tokyo, New York and London are one of the many places of central banks. Sometimes, banks, commercial investors and central banks also experience huge losses and this is passed on to investors. There are also other times that these investors and banks have huge profits as well.
Studies in recent years showed that the most transactions in the foreign exchange market are made between banks and this is called Interbank. Banks make up about 50 percent of trading in the forex chart market. Therefore, if banks are widely using this method to make money for shareholders and improve their own business, you know that the money should be there for retail investors, fund managers, which are used to increase the amount of interest paid on accounts. These banks trade money on a daily basis to increase the amount of money they have. Overnight a bank invest millions in foreign exchange market so the next day, they are able to make money, which is readily available to the public in their savings, current accounts, etc.
Commercial companies are also active in trading foreign exchange markets. Commercial companies such as Deutsche bank, UBS, Citigroup, and others such as HSBC, Braclays, Merrill Lynch, JP Morgan Chase, and still others such as Goldman Sachs, ABN Amro, Morgan Stanley are active in the foreign exchange market in order to increase their shareholder wealth.
Central banks are banks that have an international role in foreign market. Money supply, the availability of money and interest rates are controlled by Central banks. Central banks play an important role in the forex market; Tokyo, New York and London are one of the many places of central banks. Sometimes, banks, commercial investors and central banks also experience huge losses and this is passed on to investors. There are also other times that these investors and banks have huge profits as well.
