Participants in the Forex Market
The main participants in the currency market Forex is the financial funds, insurance companies, brokers and brokerage companies, multinational corporations, commercial and state banks in different countries. Each of the participants in the currency markets pursues his goal. Some of them are involved in the market to insure their assets from inflation and devaluation processes by changing the currency in which they are stored. Other participants are speculative intent to profit from fluctuations in currency pairs. Still others are forced to exchange currency in order to be able to buy / sell goods at markets that are in one way or another currency. Let us consider some of the foreign exchange market participants.
Commercial banks. They account for the bulk of foreign exchange transactions. This contributes, primarily, the fact that the vast majority of market participants keep their bank accounts, make the necessary operations, using, most banking services, customers who they are. Banks accumulate through transactions with customers, the total market demand for a currency exchange, and the attraction / accommodation facilities, and leave them to other banks. In addition, banks can operate, and at their own expense. Banks are key players in the market, the daily volume of transactions, which reaches billions of dollars. This is what allows us to assert that the quotes in the interbank foreign exchange market foreign exchange transactions conform.
Brokerage company. Brokerages are those market participants who reduce the seller with the buyer. Their main income is a percentage of the size of the transaction. Having the information on the requested rates and interest rates, brokerage firm, in fact, is a place where determined the course of already committed transactions. Thus, commercial banks use information about the rates obtained from brokerage firms.
Companies with international trade or financial relations. Companies wishing to enter other markets (or those that have partnered with companies in other countries) are facing the same problem as the lack of a single currency for the settlement. In such cases, companies are forced to resort to one of the following decisions:
1.Dogovarennost that all financial transactions between them will be using the national currency of one party.
Two. Decide to use any other currency, which would satisfy both sides, with respect to its stability and convertibility. In both cases, companies are forced to exchange their banknotes for others, since most of these firms and companies do not have direct access to foreign exchange markets. Exchanged using the services of commercial banks and stockbrokers.
Other records on this subject:
