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Main Forex Market Participants
By a.anies
These days however, the market has changed, with technological development and the ability to conduct transactions overseas with more ease, other financial / non-financial institutions are able to participate in the foreign exchange market, as well as individual investors and traders.
These days speculation accounts for more than 80% of the overall daily activity. These transactions are conducted from commercial banks to individual traders.
The main participants in the Forex market are: banks, central banks, commercial companies, individual investors and traders and brokers and the main reasons they participate in the Forex market are:
Profit from fluctuations in pairs, speculating (close to 80% of the volume)
Protection from fluctuating pairs, derived from trading goods and services, hedging
Profit from the rollover generated by differences on interest rates
Banks
Banks are the greatest participant of the Forex market. Large transactions are conducted by these banks (billions on a daily basis), both on their customer’s behalf and on their own. Speculative transactions made by banks accounts for around 70% of the volume generated by banks.
Central banks are mayor players in the Forex market, although the main reason they get in the market is not for speculative reasons. The main goal of central banks is to control the money supply of a nation, so an economy can achieve its economic goals. A central bank could intervene in the Forex market for the following reasons:
To regain price stability of an exchange rate
To protect certain levels of price in an exchange rate
When economic goals need to be achieved (inflation, growth, etc.)
Some central banks are less conservative than others, some of them intervene regularly (like the Japanese Central Bank*) and some of them not very often (Federal Reserve) - at least visually.
The most important central banks are:
The Federal Reserve (US central bank)
The Bank of Japan
The Bank of England
The Bank of Canada
The Swiss National Bank
The European Central Bank
The Reserve Bank of Australia
*The Japanese Central Bank used to intervene a great deal in the past. However, recently there has not been a lot of intervention.
Commercial companies
Individuals that

Rank Reports Profits Down Due to Investments in Marketing
<div style="padding:0px; margin-bottom:1.5em;"> <a href="http://www.online-casinos.com/news/news3110070.asp" style="font-size:1.2em">Rank Reports Profits Down Due to Investments in Marketing</a> <br> <span style="color:#888888;">Online-Casinos.com</span> - <span style="white-space:nowrap">59 minutes ago </span> <div style="width:80%;">Despite a 10 percent rise in revenues in the first half of 2010, the UK land and gambling group Rank plc also reported this week a 23 percent decline in operating profit to GBP 2.3 million. (Great ...</div> </div>
British Pound Volatility Ahead on Bank of England Rate Decision
<div style="padding:0px; margin-bottom:1.5em;"> <a href="http://www.dailyfx.com/forex/fundamental/forecast/weekly/gbp/2010/07/30/fwf_073010_gbp.html" style="font-size:1.2em">British Pound Volatility Ahead on Bank of England Rate Decision</a> <br> <span style="color:#888888;">Daily FX</span> - <span style="white-space:nowrap">Jul 30, 2010 </span> <div style="width:80%;">The British Pound may turn volatile in the week ahead as the Bank of England delivers the first rate decision based on an updated inflation outlook taking into account the government&#39;s austerity ...</div> </div>
British Pound Spiked Up Further Against Majors
<div style="padding:0px; margin-bottom:1.5em;"> <a href="http://www.rttnews.com/Content/CurrencyMarket.aspx?Id=1377403&SM=1" style="font-size:1.2em">British Pound Spiked Up Further Against Majors</a> <br> <span style="color:#888888;">RTT News</span> - <span style="white-space:nowrap">Jul 30, 2010 </span> <div style="width:80%;">(RTTNews) - The British currency spiked up further against major opponents during New York mid-day trading on Friday. The pound climbed to more than 3-week high against the euro and a multi-month ...</div> </div>
Euro slips back to $1.3015
<div style="padding:0px; margin-bottom:1.5em;"> <a href="http://www.13wham.com/business/story/Euro-slips-back-to-1-3015/ueFOlVd5Y0Ck2AXqtSbhmA.cspx" style="font-size:1.2em">Euro slips back to $1.3015</a> <br> <span style="color:#888888;">13WHAM-TV</span> - <span style="white-space:nowrap">Jul 30, 2010 </span> <div style="width:80%;">In this photo illustration a Euro note and a GBP note are displayed on April 17, 2008 in London, England. (Peter Macdiarmid, Getty Images) BERLIN (AP) ? The euro is a little lower against the ...</div> </div>
Great British Pound (GBP) Technical Major Currencies (2010-07-30)
<div style="padding:0px; margin-bottom:1.5em;"> <a href="http://uk.ibtimes.com/articles/20100730/great-british-pound-gbp-technical-major-currencies-2010-07-30.htm" style="font-size:1.2em">Great British Pound (GBP) Technical Major Currencies (2010-07-30)</a> <br> <span style="color:#888888;">IBTimes</span> - <span style="white-space:nowrap">Jul 30, 2010 </span> <div style="width:80%;">Despite of the pair moving within a bullish direction, signs of 1.5630 remaining intact are clearly appearing, where the harmonic bearish pattern has taken an AB=CD formation that has been ...</div> </div>
Great British Pound vs. Japanese Yen (2010-07-30)
<div style="padding:0px; margin-bottom:1.5em;"> <a href="http://uk.ibtimes.com/articles/20100730/great-british-pound-vs-japanese-yen-2010-07-30.htm" style="font-size:1.2em">Great British Pound vs. Japanese Yen (2010-07-30)</a> <br> <span style="color:#888888;">IBTimes</span> - <span style="white-space:nowrap">Jul 30, 2010 </span> <div style="width:80%;">The pair declined yesterday, but from a pure technical harmonic point of view, we can see on the daily chart a chance for resuming a suggested CD leg for AB=CD pattern. We have two technical ...</div> </div>
British Pound Pressing against Resistance Line
<div style="padding:0px; margin-bottom:1.5em;"> <a href="http://www.dailyfx.com/forex/technical/elliott_wave/gbp-usd/2010-07-29-1627-British_Pound_Pressing_against_Resistance.html" style="font-size:1.2em">British Pound Pressing against Resistance Line</a> <br> <span style="color:#888888;">Daily FX</span> - <span style="white-space:nowrap">Jul 29, 2010 </span> <div style="width:80%;">The GBPUSD looks vulnerable but it is difficult to short without a point of reference to place a stop. It is best to wait for a top to form and then short a bounce. The GBPUSD rally has exceeded ...</div> </div>
British Pound Turnaround May Be on the Horizon
<div style="padding:0px; margin-bottom:1.5em;"> <a href="http://www.dailyfx.com/forex/technical/ssi/gbp-usd/2010-07-29-1522-British_Pound_Turnaround_May_Be.html" style="font-size:1.2em">British Pound Turnaround May Be on the Horizon</a> <br> <span style="color:#888888;">Daily FX</span> - <span style="white-space:nowrap">Jul 29, 2010 </span> <div style="width:80%;">GBPUSD - The ratio of long to short positions in the GBPUSD stands at -1.76 as nearly 64% of traders are short. Yesterday, the ratio was at -1.74 as 63% of open positions were short. In detail ...</div> </div>
Forex spread betting: GBP in focus
<div style="padding:0px; margin-bottom:1.5em;"> <a href="http://www.spread-betting.me/spread-betting-forex-00402.html" style="font-size:1.2em">Forex spread betting: GBP in focus</a> <br> <span style="color:#888888;">Spread Betting for Me</span> - <span style="white-space:nowrap">Jul 29, 2010 </span> <div style="width:80%;">A roundup of technical insight and views from the forex spread betting and forex trading industry. Those looking at spread betting the British Pound should note that the Pound has declined ...</div> <a href="http://www.economy-news.co.uk/exchange-rates-29201007-2.html">Exchange rates: British Pound in moderate declines</a> - <span style="color:#888888">Economy News</span><br> </div>
Great British Pound (GBP) Technical Major Currencies (2010-07-29)
<div style="padding:0px; margin-bottom:1.5em;"> <a href="http://uk.ibtimes.com/articles/20100729/great-british-pound-gbp-technical-major-currencies-2010-07-29.htm" style="font-size:1.2em">Great British Pound (GBP) Technical Major Currencies (2010-07-29)</a> <br> <span style="color:#888888;">IBTimes</span> - <span style="white-space:nowrap">Jul 29, 2010 </span> <div style="width:80%;">The pair continues the bullish trend within the bullish channel shown above, as the pair is closely nearing key resistance for the main ascending channel, accompanied by overbought signs through ...</div> </div>

conduct transactions for a wide variety of reasons including: speculating, a tourist wanting foreign currency, etc
Other reason a commercial company may participate in the Forex market is to hedge their exposure. For instance, a company is to receive payments in the future in its home currency. The home has been depreciating and it is expected to continue that way until next year. In this case, the company might go short (sell) in its home and long (buy) the other in the same amount of the payment to be received. This way the price fluctuation will not affect the company.
Investment funds
These are companies represented by pension and mutual funds, international investments and arbitrage funds that invest in other countries securities.
Today, more and more funds are participating in the Forex market to speculate and hedge themselves.
Brokers
Broker companies’ main objective is to bring together buyers and sellers of foreign currency. Most Forex brokers charge no commissions. Brokers get their fee from the spread.
There are two types of brokers:
Money Maker (with dealing desk) – The broker is the counterpart of every transaction made by the trader. When a trader opens a transaction the broker opens the same transaction in the opposite direction, if the trader longs one pair, the broker shorts the same pair. This is the way for Money Makers to hedge themselves.
Non dealing desk – The broker only connects the trader to banks through an ECN (Electronic Communication Network). No trade is taken by the broker. These are the type of brokers that usually charge a commission plus the spread, but as we said before, transaction costs can fall below what Money Makers charge just for the spread.
Individuals including traders
These are corporations that participate in the Forex market trading goods and services abroad. Most companies like to be paid in their home currencies or US dollars, so in order to complete the transactions they need to acquire foreign through commercial banks.

by a.anieswww.trade-4x.blogspot.com


 

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Rank Reports Profits Down Due to Investments in Marketing
<div style="padding:0px; margin-bottom:1.5em;"> <a href="http://www.online-casinos.com/news/news3110070.asp" style="font-size:1.2em">Rank Reports Profits Down Due to Investments in Marketing</a> <br> <span style="color:#888888;">Online-Casinos.com</span> - <span style="white-space:nowrap">59 minutes ago </span> <div style="width:80%;">Despite a 10 percent rise in revenues in the first half of 2010, the UK land and gambling group Rank plc also reported this week a 23 percent decline in operating profit to GBP 2.3 million. (Great ...</div> </div>
British Pound Volatility Ahead on Bank of England Rate Decision
<div style="padding:0px; margin-bottom:1.5em;"> <a href="http://www.dailyfx.com/forex/fundamental/forecast/weekly/gbp/2010/07/30/fwf_073010_gbp.html" style="font-size:1.2em">British Pound Volatility Ahead on Bank of England Rate Decision</a> <br> <span style="color:#888888;">Daily FX</span> - <span style="white-space:nowrap">Jul 30, 2010 </span> <div style="width:80%;">The British Pound may turn volatile in the week ahead as the Bank of England delivers the first rate decision based on an updated inflation outlook taking into account the government&#39;s austerity ...</div> </div>
British Pound Spiked Up Further Against Majors
<div style="padding:0px; margin-bottom:1.5em;"> <a href="http://www.rttnews.com/Content/CurrencyMarket.aspx?Id=1377403&SM=1" style="font-size:1.2em">British Pound Spiked Up Further Against Majors</a> <br> <span style="color:#888888;">RTT News</span> - <span style="white-space:nowrap">Jul 30, 2010 </span> <div style="width:80%;">(RTTNews) - The British currency spiked up further against major opponents during New York mid-day trading on Friday. The pound climbed to more than 3-week high against the euro and a multi-month ...</div> </div>
Euro slips back to $1.3015
<div style="padding:0px; margin-bottom:1.5em;"> <a href="http://www.13wham.com/business/story/Euro-slips-back-to-1-3015/ueFOlVd5Y0Ck2AXqtSbhmA.cspx" style="font-size:1.2em">Euro slips back to $1.3015</a> <br> <span style="color:#888888;">13WHAM-TV</span> - <span style="white-space:nowrap">Jul 30, 2010 </span> <div style="width:80%;">In this photo illustration a Euro note and a GBP note are displayed on April 17, 2008 in London, England. (Peter Macdiarmid, Getty Images) BERLIN (AP) ? The euro is a little lower against the ...</div> </div>
Great British Pound (GBP) Technical Major Currencies (2010-07-30)
<div style="padding:0px; margin-bottom:1.5em;"> <a href="http://uk.ibtimes.com/articles/20100730/great-british-pound-gbp-technical-major-currencies-2010-07-30.htm" style="font-size:1.2em">Great British Pound (GBP) Technical Major Currencies (2010-07-30)</a> <br> <span style="color:#888888;">IBTimes</span> - <span style="white-space:nowrap">Jul 30, 2010 </span> <div style="width:80%;">Despite of the pair moving within a bullish direction, signs of 1.5630 remaining intact are clearly appearing, where the harmonic bearish pattern has taken an AB=CD formation that has been ...</div> </div>
Great British Pound vs. Japanese Yen (2010-07-30)
<div style="padding:0px; margin-bottom:1.5em;"> <a href="http://uk.ibtimes.com/articles/20100730/great-british-pound-vs-japanese-yen-2010-07-30.htm" style="font-size:1.2em">Great British Pound vs. Japanese Yen (2010-07-30)</a> <br> <span style="color:#888888;">IBTimes</span> - <span style="white-space:nowrap">Jul 30, 2010 </span> <div style="width:80%;">The pair declined yesterday, but from a pure technical harmonic point of view, we can see on the daily chart a chance for resuming a suggested CD leg for AB=CD pattern. We have two technical ...</div> </div>
British Pound Pressing against Resistance Line
<div style="padding:0px; margin-bottom:1.5em;"> <a href="http://www.dailyfx.com/forex/technical/elliott_wave/gbp-usd/2010-07-29-1627-British_Pound_Pressing_against_Resistance.html" style="font-size:1.2em">British Pound Pressing against Resistance Line</a> <br> <span style="color:#888888;">Daily FX</span> - <span style="white-space:nowrap">Jul 29, 2010 </span> <div style="width:80%;">The GBPUSD looks vulnerable but it is difficult to short without a point of reference to place a stop. It is best to wait for a top to form and then short a bounce. The GBPUSD rally has exceeded ...</div> </div>
British Pound Turnaround May Be on the Horizon
<div style="padding:0px; margin-bottom:1.5em;"> <a href="http://www.dailyfx.com/forex/technical/ssi/gbp-usd/2010-07-29-1522-British_Pound_Turnaround_May_Be.html" style="font-size:1.2em">British Pound Turnaround May Be on the Horizon</a> <br> <span style="color:#888888;">Daily FX</span> - <span style="white-space:nowrap">Jul 29, 2010 </span> <div style="width:80%;">GBPUSD - The ratio of long to short positions in the GBPUSD stands at -1.76 as nearly 64% of traders are short. Yesterday, the ratio was at -1.74 as 63% of open positions were short. In detail ...</div> </div>
Forex spread betting: GBP in focus
<div style="padding:0px; margin-bottom:1.5em;"> <a href="http://www.spread-betting.me/spread-betting-forex-00402.html" style="font-size:1.2em">Forex spread betting: GBP in focus</a> <br> <span style="color:#888888;">Spread Betting for Me</span> - <span style="white-space:nowrap">Jul 29, 2010 </span> <div style="width:80%;">A roundup of technical insight and views from the forex spread betting and forex trading industry. Those looking at spread betting the British Pound should note that the Pound has declined ...</div> <a href="http://www.economy-news.co.uk/exchange-rates-29201007-2.html">Exchange rates: British Pound in moderate declines</a> - <span style="color:#888888">Economy News</span><br> </div>
Great British Pound (GBP) Technical Major Currencies (2010-07-29)
<div style="padding:0px; margin-bottom:1.5em;"> <a href="http://uk.ibtimes.com/articles/20100729/great-british-pound-gbp-technical-major-currencies-2010-07-29.htm" style="font-size:1.2em">Great British Pound (GBP) Technical Major Currencies (2010-07-29)</a> <br> <span style="color:#888888;">IBTimes</span> - <span style="white-space:nowrap">Jul 29, 2010 </span> <div style="width:80%;">The pair continues the bullish trend within the bullish channel shown above, as the pair is closely nearing key resistance for the main ascending channel, accompanied by overbought signs through ...</div> </div>

Is the simultaneous purchase or sale of one currency against the purchase or sale of another.

 
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