Participants of Forex- commercial banks

Participants of Forex- commercial banks - currency stock exchanges - the firms which are carrying out the foreign trade operations - investment funds - the broker companies, private persons Participants of this market are: large commercial banks, which the basic operations under the instruction of exporters and importers are carried out through, investment institutes, insurance and pension funds and private investors. Also these banks carry out operations and in the interests due to own means, thus volumes of daily operations at large banks reach for billions of dollars. Some banks make the basic part of the profit formed only due to speculative currency operations.Except for banks, the broker houses are the active participants of the market, which are carrying out a role of the intermediary between a plenty of banks, funds, commission houses, the dealing centers, etc. act. Commercial banks and broker houses not only make operations on sale and purchase of currency under the prices which are established by the other active participants, but also offer own prices. Thus, they actively influence a process of pricing and a life of all market, therefore they are named market - makers. As against active participants, passive participants of the market cannot offer own quotations and make purchase-sale of currency under the prices which are offered by active participants of the market. Passive participants of the market pursue usually following targets: payment of export-import contracts, foreign industrial investments, opening of branches abroad or creation of joint ventures, tourism, gamble on a difference of rates, hedging of currency risks, etc. The Central banks of the different countries come on FOREX, not with the purpose of extraction of the profit, as a rule. They usually do it with the purpose of stability check up, or correction of an existing rate of national currency, The correction of an existing rate of national currency influences on a condition of national economy. The central banks also come out on the currency market through commercial banks. The profit is not the basic purpose of these banks, unprofitable operations do not involve them aswell. Therefore interventions of the central banks are masked usually and carried out through several commercial banks at once. The central banks of different countries can carry out also the joint coordinated interventions. If active participants make operations with the big sums of a few millions dollars passive participants can use margin trade, They have an opportunity to temporarily operate the capital, in one hundred times exceeding this deposit. Such way of trade allows to take a part in work of the currency market to fine investors with the small capital and thus to receive significant profit. The structure of the basic participants of the market testifies that this market is actively used by "serious business" and for the serious purposes. That means not all the participants of the market use FOREX in speculative purposes. As we already said, the change of the exchange rates can lead to huge losses at the export-import transactions. Attempts to be protected from currency risks force exporters and importers to apply for hedging various instruments of the currency market: forward transactions, options, futures, etc. Moreover, the business not even associated to export-import transactions, can have loss at change of Currency rates. That's why studying FOREX is an obligatory component of any successful business.