Where does money in the Forex market come from?


Posted August 6, 2020 by Shaiq1

This question some might find too embarrassing to ask and yet money in the Forex market it is going around on forums and being asked by beginners.

 
This question some might find too embarrassing to ask and yet money in the Forex market it is going around on forums and being asked by beginners. We thought we’d take the embarrassment out of it and answer it here for all beginners to benefit from without actually having to ask someone. The short version of the answer is: from the traders. If that makes sense, you may move on with your day now. If, however, you would like some detail you may read the rest. Understanding the currency pool Every trader who participates in forex adds to the pool of currency. In other words, your trade capital is going to add to the liquidity of that currency. In this way, all the various participants of the forex market make up the 5.1 trillion dollar the market boasts. When we say that forex is an OTC market, meaning it is Over The Counter and there is no central exchange, we are basically saying that the traders are the market. The money that goes around in the market is theirs and the market sentiment and rise and fall of prices is their doing too. With that background in place, let’s take a look at who these participants and market players are: The parties that make up the currency volume Central Banks Commercial Banks Investors Companies Individual Traders
-- END ---
Share Facebook Twitter
Print Friendly and PDF DisclaimerReport Abuse
Contact Email [email protected]
Issued By Shaiq1
Country Australia
Categories Banking , Beauty , Blogging
Tags forex market , trading , traders
Last Updated August 6, 2020