Forex is always an overlooked market due to its high volatility. Most people consider it to be the worst market, and never give an attempt to take part in it. Yet, there are many people who are actively participating in the market making gains.
So, beyond the risks, despite the volatility, what makes the market more popular? Why is forex still the top segment making high revenues? Who is profiting from it and where is the revenue coming from mostly?
Let’s take you through the most important people participating in the market trades:
Governments and Central Banks: Every nation’s government has a role in its nation’s financial scenarios. Banks have strong roles in controlling the nation’s foreign exchange markets. They together control the current flow, inflation, interest rates and ultimately control the money flow inside and outside of the nation. If anything goes out of hands, they try to utilise the substantial reserves to balance and stabilise the market, having an authority over their currency.
National Banks: the national banks, which are an intermediary market, witness the most commercial transactions each day. Large banks do the trading for millions of dollars; while the remaining has its own traders, or investors doing the trading for the bank account.
Large Companies: The companies that deal with the selling of products outside of the nation, form an important part of the forex markets. Even the companies that deal with importing services and products come together, the currency they transact within other nations or other currencies transaction they make all add up to the forex trading, adding up to the revenue part.
Individual investors: individuals who seek to invest and trade in forex markets form a small, yet active part. Apart from this, the individuals who travel to various nations on work travel, vacation, are active participants in the forex market.
Asset Management companies: the financial companies whose investors actively invest in forex markets form a huge group of participants, that again adds up to the transactions and revenues. This is the most active group next to government and active bodies.
Apart from all these, there are another small group of people, called as retail traders, just like you, who take part in this, using software or platforms for online trading. Learn about the various software that is legit and genuine in everything for forex trading, its straight from the source and just apt for anyone wishing to enter the forex markets and make some quick bucks.