Forex Market Participants

Unlike the equity market - where investors often only trade with institutional investors (such as mutual funds) or other individual investors - there are additional participants that trade on the forex market for entirely different reasons than those on the equity market. Therefore, it is important to identify and understand the functions and motivations of the main players of the forex market.

1. Governments and Central Banks
2. Banks and Other Financial Institutes
3. Hedgers
4. Speculators