Forex Competent

Market participants

Unlike a stock market, where all participants have access to the same prices, the foreign exchange market is divided into level of access. A Bank market, which is made up of the largest investment banking farms. With in the inter-bank market, which are the difference between the ask prices, and usually unavailable, and not known to players outside the inner circle. The difference between the bid and ask prices within (from 0-1 pip to 1-2 pips such as the EUR). This is due to volume. If a trader can guarantee large numbers of transactions for large amounts, they can demand a smaller difference between the ask price, which is referred to as a better spread. The levels of access that make up the foreign exchange market are determined by the size of the line. The inter-bank market accounts for 53% of all transactions. After that there are usually smaller investment banks, followed by large multi-national corporations , large hedge funds, and even some of the retail Forex-metal market makers. According to Pension funds, insurance companies, mutual funds, and other institutional investors have played an increasingly important role in financial markets in general, and in Forex markets in particular, since the early

(2004) In addition, Hedge funds have grown markedly over the 2001–2004 period in terms of both number and overall size Central banks also participate in the foreign exchange market to align currencies to their economic needs.