The foreign exchange market, as the world's largest financial trading market, involves financial investors from particularly developed countries around the world. The foreign exchange market is also known as the most fair, just, and open market in the world. So what specific roles are involved in the foreign exchange market?

Today, the editor will provide a detailed analysis of the five major participants in the foreign exchange market:

Import and export merchants and other foreign exchange suppliers and demanders in the foreign trade industry

Importers and exporters are the main demanders and providers of foreign exchange in the foreign exchange market. They are the demanders of foreign exchange when importing and exporting goods, paying loans, and having to exchange their domestic currency for foreign currency; And for exported goods, after collecting the payment, they also need to exchange the foreign currency back into their domestic currency. At this time, they become foreign exchange providers again.

However, the foreign exchange providers and demanders mentioned in these examples do not engage in single foreign exchange transactions with each other, mainly through brokers and commercial banks. In addition, there are also some other foreign exchange demanders who are not related to trade transactions, such as those who travel abroad, study abroad, international transfer and remittance, transportation fees, foreign securities trading, foreign debt principal and interest payments, etc., all of which generate these two factors.

foreign exchange broker 

Foreign exchange brokers refer to companies that specialize in introducing foreign exchange trading or acting as intermediaries for clients in the foreign exchange market. They are chain real estate and real estate developers in the foreign exchange market, playing a role in matchmaking and providing purchases.

Of course, some brokers will directly engage in foreign exchange trading to profit from it. These brokers rely on close connections with foreign exchange banks and foreign exchange suppliers to keep up with the real-time dynamics of foreign exchange supply and demand in the market. Thread needles between supply and demand, facilitate successful transactions between both parties, profit from them, and charge transaction fees. Foreign exchange banks are also willing to leverage the advantages of brokers who have a wide range of communication, flexible information, and rich trading experience to find more buyers and sellers.

Foreign exchange business departments of commercial banks in various countries

The foreign exchange business department of commercial banks is the axis of the foreign exchange market, and most transactions in the market are conducted through it. The main business of the bank's foreign exchange business department is: bill of exchange, international exchange, foreign currency storage, foreign currency trading, etc. There are two main types of foreign exchange transactions conducted by the foreign exchange business departments of commercial banks:

1. Trading foreign exchange on behalf of clients and participating in transactions as an intermediary.

2. Trading foreign exchange in one's own name.

The foreign exchange business department of commercial banks has three purposes for conducting foreign exchange transactions:

1、 To provide customers with the most comprehensive services possible, thereby improving the bank's reputation, consolidating old customers, and attracting new customers.

2、 Manage one's own foreign exchange position to maintain a reasonable level of each type of foreign exchange held, in order to avoid exchange rate risk.

3、 Earn profits and increase profits.

Central banks of various countries

The central bank plays two roles in the foreign exchange market:

1. As a manager, intervening in the foreign exchange market, conducting foreign exchange transactions, intervening in the foreign exchange market, constraining exchange rate fluctuations, and making exchange rate changes develop in a direction that is beneficial to the domestic economy and foreign trade of the country.

2. To conduct foreign exchange transactions for the government or important domestic enterprises. The distribution commission commission ratio is high, and currently it is generally 30% to 50% on the market, while we can offer up to 70%.

Foreign exchange speculators

Foreign exchange speculators do not participate in foreign exchange trading due to their actual need for foreign exchange. Instead, they rely on their precise analysis of exchange rate trends and skilled practice, using a small amount of margin in their hands to make a "short sell" and profit from it.