Nowadays there are a great many markets in between the stock market, futures market or currency markets. The third market is probably the most easy for traders to be transacted. Basics of trading in the stock and currency markets do indeed tend to be easy to dikuasi by most people, so many of them become traders stock or currency, with sometimes using examples from history such as market the cornerstone of its analysis.
5 categories of players of forex market
Let's take the foreign exchange market as an example. This type of market is the market in which currencies are mutually diperjualbelkan with each other. People can trade these markets from around the world. Some term for the currency market is the market Forex (foreign exchange), the Forex market, and the Fx market.
The foreign exchange market is a market with a daily trading volume of the world's biggest, more than $1.5 trillion u.s. dollars. All transactions involving investment and international trade has to go through this market because it involves the exchange of currencies. The foreign exchange market is the market of the most perfect that ever existed, because the price is really determined by the power of the buyer (the buyer) and the seller (seller).
The currency exchange market is said to be over the counter (OTC), where there is not one specific location between buyers and sellers to be able to really meet and exchange their currencies. Otherwise, the transaction is done via phone, fax, e-mail, or through the websites of brokers specializing in currency trading.
The trade centers are usually located in the city of London, which covers about 30% of the total transactions in the forex market, New York City, approximately 20% of 12%, and others are in Zurich, Frankfurt, Hong Kong, and Singapore with a percentage each approx. 7%. Paris and Sydney also donate a portion of each of 3%. Due to the fact that the Trade Center are located all over the world, forex traders can make transactions 24 hours a day. The market only closed at the weekend.
Category Big Player Forex
A wide range of people can join in a forex market and generally they can be divided into several types. One of the aspects that can subsume some of the players in the forex is a huge capital. They are large capitalization is usually referred to as a "Big Player" or the big players in the forex. In addition to traders, there are parties who also frequently do huge amounts of foreign exchange transactions and categorized as a great player of his forex. The following are the major Forex players:
Who belongs in this type of Forex players are visitors from a country, tourists, and immigrants who need to exchange currency when travelling. These players do not have the power to set prices. They just buy and sell in accordance with the applicable exchange rate.
The business in question here is the kind of business the import and export of goods and services, the need to exchange currency when receiving or making the payment for the goods or services they have purchased.
3. Investor and speculator
This type of Forex players are those who buy and sell foreign currency and take profit through fluctuation of price movements. But compared to investors, speculators are more proficient in handling the price movement. Even they (speculators) boldly ruled out risks that arise when trading, while investors often avoid them.
4. Commercial banks
The Group traditionally known as institutional savings and this of course is a major player in the Forex market. Banks generally engaged in speculative trading and commercial daily turn-over.
Commercial banks utilize the spread (difference) between the bid and ask to get benefits. The ask price is the exchange rate at which commercial banks are willing to sell their currency. While the bid price is the exchange rate which commercial banks are willing to buy. Commercial banks also made gains from speculation about the movement of their exchange rate, whether to go up or down.
5. Central Bank
This type of forex players are tasked to participate in the foreign exchange market with an effective tasks as an authority monete. The Central Bank did Commerce currency rather than for the purpose of making a profit, but rather to facilitate the Government's monetary policy and maintaining the stability of the monetary and economic tradition.