Saturday, January 10, 2009

Market Participant

In market of currency ( Forex ) there are sidebuying ( buyer ) a currency and side selling ( seller ) other currency. They is we conceive of the participant of foreign currency market
participant of Market of foreign currency and money market , these days multifarious progressively manner. Survey conducted recently tend to to categorize all participant become like hereunder

o Governmental
o Central Bank
o International Banks
o Investment/ Merchant Banks
o ther o Financial institution
0 Big o Client / Whole Sale
o Client – client

Governmental
To various reason of, government from some State sometimes personating of participant of market of foreign currency without passing its banker that is Central Bank. Its Need in the form of payment of flower and debt instalment etcetera

Central Bank
Beside for the requirement of transaction to government or its client, central bank also is]often got mixed up with by transaction in market of currency (forex) in the form of action intervence in effort stabilize the exchange rate its currency. This institute not only holding responsible in the case of printing money and also manage its circulation but them also accountable for look after the market stability, especially at “ floating Exchange Rate System “ where rate of currency very influenced by supply and demand strength

International Banks
Possible biggest participant in market of foreign currency come from bank – bank International. Bank – this bank international is active involved at market of currency (forex), can be categorized again become the
• Trading Banks
• Commercial Bank

Investment / Merchant Banks
Usage of Term of investment banks ( reconstruction bank ) recognized also by merchant is bank in English. For a while role of merchant bank to serve the corporate finance and capital market of many conducted by financial institution of is non bank
Bank activity – this bank beside as guarantor of share emission / obligation, sindikasi loan and ready of finance service for the company of – big company, active brand also in money market and also foreign currency
Effect invesment – effect of foreign currency and and also beyond the sea good to its client need and also by xself generate the position of various currency of which is on finally need in covering

Other Financial Institution
Institute the – disagio institute, company broker – company of commodity and company – insurance company also represent the participant of foreign currency market. Activity institute the – the institute by international result incidence of exposure in so many foreign currency. action Hedging conducted by company of commodity and receiver of insurance premium and also payment claim in currency ( forex) by big insurance company result the requirement / excess of supply of foreign currency to covering

Big Client / Whole Sale
Company – company of multi national, company – international business concern including as big enough foreign currency market participant. Company – such company can be in the form of the a plutocrat international which must entangle the x'self in market of foreign currency good to target of transaction and also hedging

Client – Client
From other side the company – big company such as those which told above, there are also many company – active small company in market of foreign currency like :

Company export and import the
Institution – institution
Company – other small company
Individual

Activity – such client activity generally in scale small is not rarely channelled to through]its banker.


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