Saturday, May 23, 2015

Forex Central Banks

Forex Central BanksCentral banks are major participants in the foreign exchange market, although the reasons forthey are not speculative. The main objective of central banks is to control and regulateamount of money offered in a nation to achieve its economic objectives. A bankCentral may intervene in the currency market for the following reasons:· To gain stability in the exchange rate and prices· To protect certain levels of the exchange rate and inflation· When the main economic objectives are to be achieved.Some central banks are more conservative than others, some regularly involved(As the Bank of Japan *) and not so often as the Federal Reserve (bankCentral America).The major central banks are:
  1. Federal Reserve US
  2. The Bank of Japan
  3. The Bank of England
  4. The European Central Bank
  5. The Central Bank of Canada
  6. The Swiss National Bank
* The Japanese central bank used to intervene much in the past, but not recentlythere has been much intervention.

Friday, May 8, 2015

Forex Top Participants

Forex Top Participants Decades ago the most important participants in the Forex market were banks commercial taking positions against other banks for a variety of reasons including speculation, to cover, among others, and companies (exporters and importers of goods and services) used to banks for their transactions.

 This was approximately 70% of the generated volume of currency transactions. These days this has changed. With the development of technologies and the ability to perform intercontinental transactions more easily other financial institutions and non- Financial can participate in the Forex market. Likewise do investors and operators around the world. Now, speculation has a stake of more than 80% of the volume generated daily.

These transactions are conducted from banks to small operators and investors. The main market participants are banks, central banks, companies commercial operators and individual investors and brokers.

They make operations for a variety of reasons such as: • profit from currency fluctuations • To protect against currency fluctuations (hedging) • For interest earnings generated by interest rates. Banks Banks are the main participants of the currency market. Most transactions are made through the banks themselves (speculative and commercial).

Great Transactions are made by these banks (billion dollars a day) and are made by account own and client orders. Speculation of banks is about 70% of volume generated daily. Ttē