Constituent groups of the currency market

● Large Investment Banks:

Are the major banks in the world, and conducting buy and sell currencies 24 hours a day and quantities traded too bulky, and represent these banks accounted for 34% of the volume of trading in the currency market, and Wim following list of the largest investment banks in the world ranking depending on the volume of its own.

These banks also communicate with each other to determine the prices at which currencies are traded in accordance with her through what is known as market between banks (Inter Bank Market), and are these banks to trade in the currency market for two purposes, and splitting to:

Interbank market customers those with financial purposes:

● Central Banks:

Central banks are the banks delegated monetary policy of the state, which can either be independent bodies of the government, or agencies of the Government is concerned with the implementation of the policy, regardless of the central banks in general seeks to control inflation and stable interest rates and currency exchange rate in order to increase economic growth.

The central banks in order to achieve the goal of stable exchange rates currency market used for this purpose, for example, China was a while ago you are buying U.S. Treasury bills even keeps the yuan - China's currency - the target exchange rate against the dollar in order to achieve the economic goals of the Chinese government.

Months in the world's central banks:

US Federal Reserve Bank and shortening (FED)

European Central Bank and shortening (ECP)

Bank Of England and shortening (BOE)

Bank Of Japan and shortening (BOJ)

Bank of Canada and shortening (BOC)

● brokerage firms (Brokers):

Companies are lies its key role in the reconciliation between buyers and sellers of small investors and individuals, and these companies buy currency in bulk from investment banks and then divide them for investors to be able to trade in the market for so-called mediators segmentation currency (Forex Retail Brokers).

 In fact, small investors do not represent a large percentage of the trading volume in the market, this represents brokerage firms, only 7% of daily trading volume.

● Investment management Firms:

Companies with huge investment activities and diverse and has a lot of species, such as investment management companies, pension funds and donations, and have great liquidity in the currency market  representing 23.3% of daily trading volume.

● Hedge Funds:

This fund is a fund private investment available to a limited number of investors and require huge sums minimum investment, and the word (Hedge) in itself means try to reduce investment risk, and (Hedge funds) are on Anakad precisely because these funds are managed high-risk, invest in each of the global financial markets (buying and selling), depending on advanced trading strategies, leverage is used in high-risk and seek to achieve the highest possible return on investment, where a large charge a commission on profits.

● Investors individuals with huge capital:

These are the major investors who rely on their investment to deal with the banks, despite being members, but they have big capital and trading in various financial markets and the currency market to diversify their investments and achieve a higher percentage of the profits.

Interbank market customers those with non-financial purposes:

● big business:

Is a global business that currency exchange operations for the purpose of buying and selling goods and services to and from different countries, that their goals are not speculative and investment, but the nature of their work requires the exchange process continuously for commercial purposes.

Lesson Summary:

Commercial and investment banks are major major banks in the world, and represent the largest volume of trading in the currency market by 34%.

Central banks seek to achieve monetary stability and intervene if necessary to control exchange rates.

Brokerage firms that enables small investors from trading in the currency market is a small percentage represents 7% of the trading volume.

Investment management companies such as retirement and pension funds to invest in the currency market and accounted for 23.3% of the trading volume.

Hedge funds are administered at high risk and invest in various financial markets, including the currency market.

Large investors trade through banks and have large capital traded in the currency market.

Big business conducting the exchange of currency for the purpose of buying and selling goods and services to and from abroad for business purposes.