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Forex: The main currency market participants

Forex: The main currency market participantsCommercial banks
They spend the bulk of foreign exchange transactions. In the banks holding accounts of other market participants and carry with them the necessary conversion and deposit-lending operations. Bank as it accumulates (through transactions with customers), the aggregate market demand for currency conversions as well as in drawing / placing funds in and out with them at other banks. In addition to satisfying clients' requests, banks can operate independently and at their own expense.
In the end, the foreign exchange market is a market of interbank dealings, and, speaking afterwards about the movement of exchange rates and interest rates, one should bear in mind the interbank foreign exchange market. On world currency markets have the biggest influence major international banks, the daily volume of transactions of billions dollars. That 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 - it is market participants who are interested in enhancing the value of the currency, the bears - that 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 between quotations of currencies fluctuates within fairly narrow limits. However, when bulls or bears are "taking over", quotes, exchange rates are changing quite dramatically and significantly.

Firms that conduct foreign trade transactions
Companies participating in international trade, a stable demand for foreign currency (in the part of importers) and supply of foreign currency (exporters), and 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 and spend 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 money in securities of governments and corporations of different countries. At the dealership jargon they are called simply fund or funds; best-known fund "Quantum" George Soros, and 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, etc., such as, for example, Xerox, Nestle, General Motors, British Petroleum and others.

Central banks
Their main task is to exchange regulations in the foreign market - namely, the prevention of abrupt jumps of the national currencies in order to prevent economic crises and maintain 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 to as they can play as bullish, and in the fall because of the particular challenges facing them at the moment. Central Bank can act in 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 short FED), the central bank of Germany - Bundesbank (Deutsche Bundesbank) and the UK - BoE (Bank of England, also known as the Old Lady).

Currency Exchange
In some countries with transitional economies there are currency exchanges, whose functions include the exchange rates for businesses and forming a market exchange rate. The state usually actively regulates the exchange rate, using the compactness of the exchange market.

Foreign exchange brokerage firms
Together a buyer and a seller of foreign currency and conduct a conversion between the loan or deposit transactions. For its mediation brokerage firms charge a brokerage fee as a percentage of the transaction.

Individuals hold a wide range of non-trade transactions in the foreign tourism, transfers of salaries, pensions, royalties, buying and selling foreign currency in cash. And in 1986. with the introduction of margin trading individuals had the opportunity to invest spare cash in the FOREX market for profit.
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