Main players

1. central bank

2. Specialized foreign exchange bank

3. Foreign exchange broker (broker)

4. Discount company

5. Foreign exchange trader

6. Multinational company

7. Speculator on foreign exchange

8. Importers and exporters and other foreign exchange suppliers and demanders

The above eight types of participants in foreign exchange market transactions can be summarized as the central bank, foreign exchange banks, foreign exchange brokers and foreign exchange market customers. The participation of these four parts in the market constitutes the five major forms or relationships of all transactions in the foreign exchange market:

(1) Foreign exchange transactions between foreign exchange banks and foreign exchange brokers or customers;

< p>(2) Foreign exchange transactions between foreign exchange banks in the same foreign exchange market;

(3) Foreign exchange transactions between foreign exchange banks in different foreign exchange markets;

(4 ) Foreign exchange transactions between the central bank and various foreign exchange banks;

(5) Foreign exchange transactions between central banks.

Extended information:

Function

1. International settlement: Because foreign exchange is used as a means of payment and settlement for international economic transactions, settlement is foreign exchange The most basic function of the market.

2. Exchange function: Buy and sell currencies in the foreign exchange market, convert one currency into another currency as a means of payment, and achieve effective conversion of different currencies in terms of purchasing power.

3. Credit. Since banks operate foreign exchange business, it is possible for them to use the time difference between foreign exchange receipts and payments to provide loans to importers and exporters.

4. Hedging: that is, futures trading for value preservation. This is different from the purpose of speculative futures trading. It is not to make profits from price changes, but to prevent foreign exchange earnings from suffering losses due to future changes in exchange rates, which is very important for importers and exporters.

5. Speculation: buying and selling foreign exchange in anticipation of price changes. In the foreign exchange futures market, speculators can take advantage of changes in exchange rates to make profits, generate "longs" and "shorts", and place bets on future market conditions.

Reference: Baidu Encyclopedia-Foreign Exchange Market