Foreign exchange market entities

Now, you already knowforeign exchangeThe overall structure of the market. Next, let's delve deeper and find out who the people standing on the stairs are? One important thing is to understand the nature of the spot foreign exchange market and know who the real players are.

Now you know the overall structure of the foreign exchange market. Next, let's delve deeper and find out who the people standing on the stairs are? One important thing is to understand the nature of the spot foreign exchange market and know who the real players are.

until20century90At the end of the era, only "big players" could participate in this game. The initial requirement is that only when you have1000Wanzhi1500Only with a capital of ten thousand US dollars can you proceedForeign exchange transactions. Foreign exchange was initially used to meet the needs of bankers or large institutions, rather than being used by our group of "little ones". However, with the rise of the internet, online foreign exchange trading companies now have the ability to provide trading accounts for us individual foreign exchange investors.

Without further ado, the following are the main participants in the foreign exchange market:

1. Super Bank

Given the dispersion of the foreign exchange spot market, it is the largest banks in the world that determine foreign exchange rates. Based on the supply and demand relationship of currency, these large banks "formulate" purchases that we like or dislike/Selling price difference.(These large banks are commonly referred to as market makers)

These large banks are collectively referred to as the interbank foreign exchange market. These banks provide large-scale foreign exchange transactions to their customers and themselves every day. Some super banks include UBS, Barclays, Deutsche Bank, and Citibank. You can say that the interbank market is a foreign exchange trading market.

2. Large commercial enterprises

The purpose of the company entering the foreign exchange trading market is to conduct business. Therefore, Apple must first convert the US dollar into Japanese yen to import electronic devices from Japan. Due to the fact that the scale of foreign exchange transactions by large commercial companies is much smaller than that of interbank market transactions, these types of market participants usually engage in foreign exchange transactions with commercial banks.

Mergers and acquisitions between large companies can also cause fluctuations in the foreign exchange market exchange rate. In international cross-border mergers and acquisitions, large-scale currency exchanges may be involved, which may cause fluctuations in exchange rates.

3. Governments and central banks of various countries

Governments and central banks, such as the European Central Bank, the Bank of England, and the Federal Reserve, also regularly participate in the foreign exchange market. Like enterprises, government agencies at the national level also participate in the foreign exchange market, with the aim of conducting international trade settlements, managing their foreign exchange reserves, and other operations.

At the same time, when the central bank adjusts interest rates to combat inflation, this behavior can also lead to fluctuations in the foreign exchange market exchange rate. The central bank can influence the value of currency through interest rate measures. When the central bank intervenes in the foreign exchange market, there may even be significant fluctuations in the foreign exchange market, which may be direct intervention or indirect intervention. Sometimes, central banks believe that their currency prices are overvalued and undervalued, and they will sell them in the foreign exchange market/Buying to change the trend of exchange rates.

Participating is about making money

This is likely the voice of speculators. Speculators' foreign exchange trading volume accounts for a significant portion of the total foreign exchange trading volume90%These speculators have diverse types and varying scales. Some speculators have full pockets, while others are shy, but their purpose in participating in the foreign exchange market is so similar - to make money.

Don't worry, once you graduate from foreign exchange school, you can become one of the speculators. But if you don't understand the history of foreign exchange, how can you be a foreign exchange speculator?