Who are the market participants?
2023-06-19
Participants in the foreign exchange market mainly include central banks, commercial banks, non-bank financial institutions, broker companies, dealers and large multinational companies. They trade frequently, and the transaction amount is huge, each transaction is several million dollars, or even more than tens of millions of dollars.
Generally speaking, there are three motivations for their participation:
1) Through trade and investment, international companies convert foreign profits into domestic currency.
2) Hedging, corporate finance ministers and money managers will also use the foreign exchange market to reduce the risk of price fluctuations in futures transactions.
3) Profit from speculation.
7. What are the major foreign exchange markets in the world?
At present, there are more than 30 major foreign exchange markets in the world, which are located in different countries and regions on all continents of the world. Among them, the most important ones are London, Frankfurt, Zurich and Paris in Europe, New York and Los Angeles in America, Sydney in Australia, Tokyo, Singapore and Hong Kong in Asia.