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Showing posts with the label central banks

Who is trading in the foreign exchange market?

Trading currencies between countries, as well as deciding when to invest in currencies, is what forex trading is all about. For example, foreign exchange is traded between countries through a broker or financial institution. Foreign exchange trading, like stock trading, has become a popular pastime for many people. Banks, governments and brokers are the primary players in the market while retail traders are known as bystanders. The forex market fluctuates on a daily basis due to changes in the broader financial market. Every day, millions of dollars are exchanged between a number of large countries, and this includes some trade between smaller countries as well. Interbank transactions are the most common in the foreign exchange market, according to research conducted over the years. About half of all transactions in the foreign exchange market are handled by banks. Since the banks are using this method to make money for shareholders and their own business advancement, you know that th