Education Forex Market

Actors in the Forex Market

In the forex market, of course there are several parties involved and giving influence in it or the term as a player in the market. Forex market players can be divided into 6 as follows:

1. Bank

Banks play an important role in the forex market. In this case the term Interbank Money Market (PUAB) is known. PUAB itself has a role to fulfill almost all the needs of buying and selling and currency circulation in the global business field. In carrying out its functions, sometimes banks will process the buying and selling of currencies on behalf of their customers. But in large quantities, the transaction will be carried out on behalf of the bank itself.

PUAB itself is also used by forex brokers to gain profits in bringing together forex sellers and buyers directly. From there forex brokers can benefit not a little. But now, the system used by PUAB has been developed with an electronic system that is more effective and efficient.

2. Business Needs

The second forex market participant is the need of a company or business actor when making payments using foreign currencies. Basically a business sometimes requires funds in the form of foreign currency when making transactions, but actually the direct effect is not too pronounced in the state of a currency.

The results will be different if you talk about a large corporate corporation. Here large companies have a large and unpredictable share if they carry out a large number of foreign currency releases. When they release it, the market or speculators cannot expect it directly. As a result, the value of a currency can move up or down.

3. Central Bank

The Central Bank in this case has a role as the controller of the money supply, the occurrence of inflation and also related to interest rates. With its very important role, the Central Bank can easily influence the development of the forex market.

One of the advantages of a country's Central Bank is that just making an intervention is enough to create a turmoil on the forex or foreign exchange market conditions. This is due to concerns about the actions of the Central Bank which can increase or decrease currency rates. So a little more sustainability of the currency market is indeed determined by the movements of the Central Bank in that country.

4. Investment Management Company

Generally, Investment Management Companies that play in the forex market do not make this business the main source of income especially as a step of speculation. The company is a body that usually manages several funds such as pension funds or donations from the foundation. All funds that they use in the forex market are sometimes only "played" to get additional revenue for the company.

5. Hedge funds

Next is Hedge funds. Hedge funds are companies that do play in the forex market as speculators. The funds they release are truly maximized capital in the forex market, there is no other reason for them except to get a large profit from these activities.

Surprisingly enough, Hedge funds have the ability to grow big and even have the ability to influence currency values better than the Central Bank. If this happens it will be very difficult for the value of the currency to move well because it is already under the control of a corporation that is oriented to profit.

6. Forex Brokers / Brokers

The last is a forex broker. Until now, forex brokers are still the party who most profit from the forex market. Basically, forex brokers can be individuals, groups or companies that have jobs to bring together customers / buyers with sellers of foreign currencies.

The existence of a forex broker is indeed very helpful for forex business people or commonly called forex trading. But not infrequently also, forex broker companies that are not fake aliases are actually the most detrimental parties, especially for new players in the forex business.

The following is a review of the definition of forex, functions, and actors in the forex market. Hopefully it can be your additional knowledge about useful forex trading.


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Actors in the Forex Market

everything you write in the rule is mutually sustainable, all interrelating with the biggest factor in the central bank.

Forex is very influential with the volume of transactions reached everyday with an average of the information I get is $ 5.3 trillion in one day

I think we as Retail Traders are also one of the market movers. But indeed our role is very small.

We have to do education for market movements or we learn before we start trading, this is so that we can avoid unnecessary losses later

what is conveyed in the opening of the topic is very correct, considering that the forex market is very dynamic and can use any analysis, both technically and fundamentally, all the same

This education is really good as a read about what is really going on in the financial markets so now I know what is driving and who is in control and I will learn exactly about this so I can gain insight into what forex trading actually is

This kind of education is what I'm looking for because when I wanted to find out who was driving the Forex market and you've explained everything here, it's true what I know are banks and investment managers.