This article will share with you the main participants in the foreign exchange market ~
Generally speaking, in the foreign exchange market, the participants of foreign exchange transactions are mainly divided into two levels and five categories.The two levels are retail transactions between banks and banks to customers.Inter -bank transactions, including commercial banks, commercial banks, and central bank transactions. Generally, the starting point of each transaction is $ 1 million or other currencies.Banks' transactions to customers are unlimited. Banks often gather transactions below one million US dollars through branches, and then transfer to the wholesale market.Participants of the five categories are foreign exchange banks, agents, general customers, foreign exchange speculators and central banks.The mutual transactions between these five participants have formed transactions throughout the foreign exchange market.The scope of transactions in the foreign exchange market includes transactions between foreign exchange banks and foreign exchange agents or customers, transactions between foreign exchange banks in the same foreign exchange market, transactions between foreign exchange banks in different foreign exchange markets, transactions between central banks and foreign exchange banksAnd transactions between central banks of various countries.
1. Foreign exchange bank
Foreign exchange banks are the main body of the foreign exchange market. Generally, the central bank is designated or authorized to operate foreign exchange business.Foreign exchange banks include domestic banks and other financial institutions, which are dominated by foreign exchange business, and other financial institutions, which are also under foreign exchange businesses. They are located in foreign bank branches, agencies or other financial institutions in their own country.Foreign exchange banks can have trades with all other participants in the foreign exchange market, including foreign exchange brokers, customers, other foreign exchange banks and central banks.
There are two main channels for foreign exchange banks in foreign exchange transactions.Foreign exchange banks directly buy and sell foreign exchange on behalf of customers, earning a difference.There is a price difference in foreign currency buying and selling prices reported to customers. For example, USD1 = CHF0.8490/0.8496, that is, the exchange rate of the bank to buy the US dollar is 0.8490 Swiss franc.The spread is 0.0006 Swiss franc.Foreign exchange banks earn this difference through buying and selling foreign exchange on behalf of customers.In addition to the traditional price difference, foreign exchange banks have also carried out foreign exchange innovation business such as swaps, futures, and options. Through these businesses, foreign exchange preservation or arbitrage is arranged for customers, and a certain percentage of service fees and fees are charged.Now, this income has become the main source of revenue from foreign exchange banks.Of course, foreign exchange banks can also make profits by mobilizing foreign exchange positions within the operating policy and limit of the Bank.
2. Broker
Brokers include foreign exchange brokers and foreign exchange traders.Foreign exchange brokers are intermediaries who specifically introduced foreign exchange trading business and promoted the transactions of both buyers and sellers.Foreign exchange brokers can provide customers with the latest, most reliable and most favorable information, and can also transaction for customers.Many large banks can independently conduct foreign exchange buying and selling, but they still often conduct foreign exchange transactions through agents. This is not only because the agent can report a more favorable price, but more importantly, it can avoid exposing their identity, which is conducive to the bank itself.Implement its market strategy.
Foreign exchange traders are personnel specializing in foreign exchange transactions in foreign exchange banks. Foreign exchange traders offer to customers, and agent banks conduct foreign exchange trading.Depending on the responsibility of the work, foreign exchange traders can be divided into chief traders, senior traders, traders, junior traders and internship traders.The chief trader is generally responsible for several major foreign exchange trading, and the transaction amount is not limited; senior traders are responsible for more important foreign exchange transactions, and there are few restrictions on the amount of transaction; traders, junior traders and internship traders are only responsible for responsibleA currency transaction, and specifies the transaction limit and over -limited transaction according to experience, requests the consent of senior traders or chief traders before the transaction.
3. General customers
General customers refer to enterprises, agencies, groups and individuals except foreign exchange banks.They are the initial suppliers and the ultimate demanders of foreign exchange, such as companies engaged in import and export trade, enterprises that invest in multinational investment, and companies that repay foreign currency liabilities, as well as individuals who need foreign exchange.General customers' foreign exchange trading activities reflect the substantial supply and demand of the foreign exchange market. Although this part of the transaction accounts for not much proportion in the foreign exchange market, it will have an important impact on the national economy of one country.
4. Foreign exchange speculators
Foreign exchange speculators are market participants who use the time differences between the exchange rate of exchange rates to use a certain currency exchange rate to buy low -selling and selling profits.
5. Central Bank
