Forex: The main currency market participants
They spend the bulk of foreign exchange transactions. Accounts at the banks and other market participants carry with them the necessary conversion and deposit and lending operations. Banks accumulate (through transactions with customers), the total market demand for currency conversions as well as in drawing / placing funds in and out with them to other banks. In addition to satisfying clients' requests, banks can operate independently at their own expense.
Ultimately, the foreign exchange market is a market for interbank transactions, and then put on the motion of exchange rates and interest rates, one should bear in mind the interbank foreign exchange market. In world currency markets have the greatest impact large international banks, the daily volume of transactions of billions of dollars. It is banks such as Deutsche Bank, Barclays Bank, Union Bank of Switzerland, Citibank, Chase Manhattan Bank, Standard Chartered Bank and others. Their main difference is the large volume of transactions that may lead to significant changes in the quotation or the price of the currency.
Usually the big players are divided into bulls and bears. Bulls - is the market participants who are interested in increasing the value of the currency, bears - is the market participants who are interested in lowering the value of the currency. Normally, the market is in equilibrium between the bulls and bears, and the difference in currency quotations vary in a fairly narrow range. However, when the bulls or the bears are "taking over", quotes, exchange rates are changing quite dramatically and significantly.
Firms that conduct foreign trade transactions
Companies participating in international trade have a stable demand for foreign currency (in terms of importers) and supply of foreign currency (exporters) and the place and attract free currency balances in short-term deposits. At the same time, these organizations direct access to the forex market, as a rule, do not have, and they conduct their conversion and deposit transactions via commercial banks.
Companies engaged in foreign investment assets (Investment Funds, Money Market Funds, International Corporations)
These companies, represented by various international investment funds, implement a policy of diversified management of portfolio assets by placing funds in the securities of governments and corporations of different countries. At the dealership slang they are called simply funds or funds; best known fund "Quantum" George Soros, it executes successful exchange speculations, as well as fund "Dean Witter". Firms of this kind also include major international corporations engaged in foreign manufacturing investment: the creation of subsidiaries, joint ventures and the like, such as, for example, Xerox, Nestle, General Motors, British Petroleum and others.
Their main task is to exchange regulations in foreign markets - namely, the prevention of sudden surges of national currencies, in order to prevent economic crises, maintaining the balance of exports and imports, etc. Central banks have a direct impact on the currency market. Their influence can be direct - in the form of intervention, and indirectly - through the regulation of money supply and interest rates. They can not be attributed to the bulls or the bears, because they can play to improve as well as a fall because of the particular challenges facing them at the moment. Central Bank may act on the market alone to influence the national currency, or in concert with other central banks to conduct a joint monetary policy in the international market or for joint interventions. The greatest influence on world currency markets were: the U.S. central bank - the Federal Reserve System (US Federal Reserve or briefly FED), Germany's central bank - the Bundesbank (Deutsche Bundesbank) and the UK - BoE (Bank of England, also known as the Old Lady).
A number of countries with transitional economies currency exchanges, whose functions include the exchange rates for businesses and forming a market exchange rate. The state usually actively regulates the level of the exchange rate, using the compactness of the stock market.
Foreign exchange brokerage firms
They feature a buyer and a seller of foreign currency and conduct conversion between them, or deposit and loan operations. For its mediation brokerage firms charge a brokerage fee as a percentage of the transaction.
Individuals hold a wide range of non-trading operations in the sphere of foreign tourism, transfers of salaries, pensions, royalties, buying and selling of currency. And in 1986. with the introduction of margin trading individuals have the opportunity to invest idle funds in the FOREX market for profit.