Who are the market participants in forex trading? Trading players in the forex market are not only individual traders like you, but there are also those in the form of institutions or agencies, government, and others. They can do a trade just like what you do.
Do you know what influences the ups and downs of prices in the forex market? Yes, the price value that changes. That changed in the forex market is influenced by supply and also demand. The term supply refers to the level of selling transactions carried out by traders.
Meanwhile, the term demand refers to the level of buy transactions carried out by traders. So in conclusion, the ups and downs of prices in the forex market are influenced by market participants. It is also an important part of trading.
Those participants are people/agencies that carry out trading activities in the forex market. It means that you are not alone in the market. Below are the types of forex trading market players that you get to know from now.
Banks and Financial Institutions
Among other trading players, banks are the most active in transactions. Why does this happen? The bank has quite a number of customers, both at home and abroad. It means that that many buying and selling transactions are carried out by its customers.
Bank also has indirectly activity carried out currency exchange and trading. It is one of the most essential market participants nowadays. In addition, there are also special departments that are partners of banks that have the main role of forex trading with a large amount of capital.
The part of the Bank's department that is in charge of forex trading is called 'Treasury'. Banks involved in money market transactions are not only representative banks but also private banks outside the government. It means that all banks can trade in the best forex broker.
HEDGE FUND
Hedge Funds are commercial financial management institutions that act as fund collectors from investors. The amount of funds managed by a Hedge Fund is generally very large. It is because the source of funds obtained by investors is also very large.
There are countless Hedge Funds scattered throughout the world, and some of the most famous and trustworthy examples include JP Morgan Asset Management, Bridgewater Associates, and Goldman Sachs Asset Management. Besides the hedge fund, the government is also one of the market participants right now.
Corporate or Multinational Company
Multinational companies are companies that target international or cross-border markets. During this time, several large companies, especially multinational companies, also participated in the sale and purchase of foreign currencies. It is done on the basis of the company's needs in buying and selling products/goods.
Meanwhile, cross-border buying and selling will require foreign currencies as the payment process. That is why multinational companies will continue to need and buy foreign currencies as a means of payment for the products/goods that they buy.
Retail Trader
The retail trader is also one of the market participants in the forex. Retail traders are individual traders (not companies / non-government) who take advantage of price fluctuations with a relatively smaller capital and profit targets. Basically, the individual traders are also included in the retail trader.
It means that you trade for yourself. Capital funds from us and also the profits generated all for ourselves. As a retail trader, you must be able to handle all types of needs that are needed in trading. It is included in joining the Didimax forex broker.
This broker is really something. It provides various features and services to support your forex trading. The signal or connectivity is beyond your expectation. That is why; you can say that it is suitable for any market participants at the present time.
