Brief description of the main Forex market participants:
* Central banks of countries have the largest turnover in the market. Central banks perform the regulatory function of managing money and credit flows within a particular country in order to maintain a certain range of the exchange rate of their national currency. Using the tools established by law, Central banks perform the following functions in the market: monetary policy, regulation of the money supply, which also provides for the monopoly right to issue money, currency policy, including, if necessary, currency interventions, and others. All these functions have a significant impact on changes in the exchange rate of the national currency;
* commercial banks act as intermediaries for participants in the Forex market. Commercial banks are trading accounts of the participants, which committed foreign exchange transactions. In addition, commercial banks are able to form an interbank currency market, operating with their own funds when working with other banks;
* currency exchanges where transactions are carried out around the clock without time limits, which significantly distinguishes them from the well-known stock exchanges, commodity, futures, options and currency exchanges for a period of time;
• companies that conduct foreign trade operations usually carry out their foreign exchange operations with the help of commercial banks. These companies buy and sell currency for mutual settlements under import-export contracts, while adhering to the policy of reducing the loss on conversion operations to zero;
* investment participants, which include various funds, such as pension, investment, insurance companies, and others. Investment funds invest their funds in securities and foreign corporations;
* brokerage companies whose main task is to ensure transactions between buyers and sellers. As a reward for their services, brokerage companies receive a percentage of the transaction amount or a pre-agreed fixed amount. Brokerage companies are exactly the link in the Forex market chain where the exchange rate is formed, on the basis of which commercial banks conduct further conversion operations;
* private investors (traders). With the development of new information technologies, Forex trading has become available to almost anyone who has even a relatively small capital. Every day, the number of these market participants increases more and more. Traders conduct speculative currency operations, the main purpose of which is usually to make a profit on the difference in exchange rates.