The participants of the Forex market

The participants of the Forex market

Before getting started in Forex , you need to understand what position is online trader and what he stands in the world monetary system . Study of types of participants of the Forex market , as well as the study of the way of their impact on the foreign exchange market will make it clear which affects the currencies of different countries.

The main component of the global currency market brokers are firms , sometimes you can hear a slightly different name – the brokerage house. It is a kind of intermediary among the many major participants of the Forex market .

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Commercial banks – this is the main part of the participants of the Forex market . They have the right to carry out transactions on purchase / sale of foreign currency , as the name of his organization, and at the request of a client who prefers to entrust their assets to the bank.

Agreements may be entered into with any other type of commercial banks , the consensus with respect to which the quotations has been made, without intermediaries , or involving intermediaries , in the role of which in this case are the brokerage firm.

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The method of interaction can be described as follows : a bank with its dealers communicates brokerage house to buy the currency, and receives information about the terms on which the transaction is carried out other banks . The transaction is concluded through a brokerage house , unless, of course , both banks are satisfied with the terms of the transaction. The benefit of brokers is to obtain interest income (commissions ) from the deal . The real exchange rate is created in that brokerage houses , which makes the main link brokers in the foreign exchange market.

Equally important participant in the Forex market are non-profit , the central banks of various countries around the world. Their goal in the foreign exchange market – it’s not for profit, and performance as a counterweight to adjust the rate of monetary and economic condition of the state. In most cases, state-owned banks operate through intermediaries – through commercial banks (a fact they are , of course, carefully concealed ) . There are also cases of a confederation between the banks of the leading world powers.

All of the above subjects are an active component of the forex market , in addition to committing various monetary transactions they contribute to the foreign exchange market by offering and implementing their own quotes . Transactions made active participants reach amounts in millions of U.S. dollars, not using margin trading . Such active participants in market maker be called the market participants . But in the Forex market are also present and passive participants – they do not set prices , but only make deals based on prices that are offered marketmeykerami .

The participants of the passive type include investment funds. Passive participants invest their funds in the state. shares and securities of large corporations many countries. Leading participant in the industry is the foundation «Quantum» – an investment fund owned by George Soros . Huge amounts are measured in billions of U.S. dollars owned by these investment funds. They can attract even billions , but borrowed funds.

From this it follows that the investment funds, high net worth , can become a serious competitor to state banks in many countries in the securities market and the currency market .

Large companies who import or export of various kinds of commodities, ie commit money trading foreign types are also passive participants in Forex .

If an organization wishes to import goods from abroad , using foreign currency , then these funds should be available before the conclusion of the contract. And if the contract is sent to the export of goods abroad while also using foreign funds , they should be converted immediately after the conclusion of the contract. Monetary relations of this kind are carried out mainly through commercial banks.

International corporations that have their branches in other states also are passive participants . And here, again in the role of intermediaries, are the commercial banks, which by means of currency conversion helps to transfer funds from the satellites to the central offices of the company.

Now you can further explore the role of online traders on the international Forex market funds . To make transactions and contracts through the brokerage organization, you need to have at their disposal a capital of not less than 100,000 ( one hundred thousand) U.S. dollars. This amount of funds available to the private online trader in most cases are not available. Online traders can execute transactions and purchase \ sale of funds by commercial banks, but the speculator act under such conditions is impossible. Because of the very high exchange rate differences, commercial banks, whose changes usually occur once in twenty-four hours to receive the income from transactions is very difficult. The appearance on the market of such a situation on aid to private traders began to appear such as retail brokerage house ( house commission ) . Using the rules marzhinalnalnoy trading, online trader has the opportunity to dozens and even hundreds of times to increase his own, albeit a small capital , at the risk of losing only a minimum – their capital , thereby avoiding the risk of loss of funds of others .

In the last decade, the Internet has become available to the public , and now the brokerage organization , becoming dealing centers are able to provide their services to any person from any part of the globe . Absolutely anyone , having at its disposal a number of thousands of U.S. dollars , an opportunity to test yourself and make money in Forex . But the rush to anything dealing with money ! Here is an article on the internet resource Forex Mania , create a virtual account and try to work on this bill for some time . Virtual Account will give you a free , valuable experience , which is required to work on a real account.

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