Forex market players

Who are the players, deal makers, crowd pullers and straight up killers in the forex market..

After we had previously discussed the forex market hierarchy. if you haven’t read that post go back to WHO TRADES FOREX. Here the was an overview of the forex hierarchy and how they stack up against each other, refer back to the post to understand this post. Hehe it is when we look back at history that we are able to repeat it or not.

Hopefully you’ve gone back and understood the overall structure of the forex market, lets look into the various segements a bit deeper so as to have a better understanding of each segement. We are going to find out who exactly are this people on this ladder. It is crucial for you to understand the forex market , its nature and who are the main forex players for as I said before you’ve got to know who your playing with or against so as to know/be able to win.

Before until the late 1990s, only the big boys could be able to play this game of forex. What do I mean the big boys well you had to have about….wait for it…ten to fifty million dollars just to start with. I kid you not that was the initial requirement so to be able to trade. This forex market was initially intended to be used by bankers and the large instituition not us little guys. I don’t know about you but I don’t have 10 to 50 million dollars just lying around somewhere as I go to my next holiday home. The redemption came from the rise of the internet, online forex brokers offering trading accounts to just about all retail traders like us. This means the internet has much better use than just cat videos and Facebook posts educate yourself son.

The major forex players are

1.The super banks

Again as was previously stated because the forex market is so decentralized its the largest banks in the world that determine the various exchange rates. How do the determine this price if they cant corner the market, well it boils down to the basic economic principle of supply and demand for the currency, this super banks are the ones that make the bid ask spread that we adore or hat depending on the days currency pairs

This large super banks are collectively known as the inter bank rate. They take on obscene amounts of forex transactions per day for both they are various customer and themselves. Examples of this banks are UBS, Barclays Capital AND Citigroup. You could say the are the forex market.

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