Tuesday, February 26, 2013

the players in the forex market


The largest players in the forex markets are the largest investment banks
such as Deutsche Bank, UBS, CThe large investment banks account for over 50% of all the forex related
transactions.
The next large user of the forex markets are large multinational
companies such as Nike, Walmart and General Electric. These companies may
use the forex markets to hedge their currency risks with other countries.
Another large user of the forex markets are national central banks. They
often use the forex markets to try and control inflation, money supply and
interest rates.
Investment management firms and hedge funds also use the forex
markets. They may be buying or selling for a pension fund or a mutual fund to
help facilitate a foreign bond or stock trade. They may even be speculating for
profit for or against a certain currency.
Lastly, retail forex brokers and individual speculators use the forex
markets for profit and hedging currency risks. This is the smallest group of forex
investors making up only 1-3% of the total forex transactions globally.itigroup, Barclays Capital and Goldman Sachs.

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