Who are the main participants in the Forex Market?
The FX markets have a wide variety of market participants compared to other capital markets. A unique aspect of the foreign exchange markets is the large number of the major market participants that transact on a non-profit seeking basis. Professional investment risk-takers, dedicated to profiting from foreign exchange markets, only make up around 25% of market participants, as opposed to around 80% or 90% in other capital markets. The other market participants, such as central banks (which might intervene to enact government policy), Commercial Banks and corporations (which typically transact to finance a specific deal); do not seek to generate maximum profits as their primary motive for foreign exchange market transactions. There are different types of players that conduct business in the Forex market. They include Forex dealers, financial institutions, commercial banks, central banks, money managers and individual traders. We will look at each of these players in a little more detai
