Forex players cont..

Previously we talked about the forex players and had discussed the super banks, if you don’t know who the super banks are refer back to the article FOREX PLAYERS. we discussed that the forex hierarchy has major players who are essentially the forex market itself. The various prices in the stock market are determined by the supply and demand of the various currencies at any given time. In economics this is known as the supply and demand curve which means the higher the supply for a commodity, in this case currency, the lower the price. Vice versa this means the higher the demand for a certain currency the higher the price of that said currency. So more demand higher price.

To continue on the forex market players the next is

2. Large commercial companies

This are corporations that take part in the foreign exchange market for the sole purpose of doing business. An example would be Apple needing to exchange its US dollars so as to get Japanese Yen so as to purchase the electronic parts needed from japan so as to make the next iMac. Since their volume is much smaller than the super banks they make deals with commercial banks for their forex needs.

3.Governments and Central Banks

Governments and central banks such as the bank of England, the federal reserve and the European central bank are regularly involved in the forex market. Just like corporations they need foreign currency for their operations, international trade payments and their local foreign reserves.

Central banks affect the FX market when they adjust their interest rates so as to control inflation. By doing this the influence the currency valuation so as to alter the price of their local currency.

4. The speculators

You know those guys that just want to make a straight killing and I mean killing. I’m not talking about pocket change or just enough money to get by( though they could) I’m talking about the assassins who are in it to win it. This are the guys looking at that dead beat job and saying you know what I can do much better for I’m a winner I just need to show them.

This are the people who want to achieve the dream I was telling you about the ones who want that big house, car and spouse. They compromise of up to 90% of the trading volume in all shapes and sizes some have fat pockets others have thin. If you continue with this blog posts and the recommendations you can be on of this cool crowd

How can you be part of this if you don’t know FOREX HISTORY..


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