Who are the foreign exchange market participants?
- 7월 18, 2017
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Who are the foreign exchange market participants?
Forex is a financial investment product that can be easily accessed by anyone, even though it is an online transaction. Let's see what kind of forex people have?
Consumers and travelers
Consumers can purchase goods from abroad or via credit card. The amount the consumer pays in foreign currency is converted to the local currency on the credit card statement. When a traveler uses cash to pay for goods and services in a foreign country, he or she must go to a bank or currency exchange and convert the currency into another currency.
Enterprise
Businesses often need to convert currency when trading outside their home country. Large companies need to switch huge amounts of money.
Investors and speculators
Investors and speculators require money exchange whenever they deal with foreign investments such as stocks, bonds, bank deposits or real estate. Investors and speculators trade currencies to benefit from moves in the foreign exchange market.
Commercial and investment banking
Commercial banks and investment banks trade currency to services for deposits and loans customers. They also participate in the currency market for hedging and speculative purposes.
Government and central bank
Governments and central banks trade currencies to improve economic conditions or intervene in attempts to adjust economic or financial imbalances. Because it is nonprofit, the government and the central bank are far from being willing to profit.
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