Market participants

9 answers

Central banks, FX dealers, funds, retail — who really moves the 9.6 trillion dollar daily market.

Editor's picks6 min read

Central banks in the forex market — their role

Central banks do not speculate in the forex market. We explain their three roles — managing reserves, currency intervention and the interest-rate channel.
Editor's picks6 min read

Hedge funds in the currency market — the capital that sets the tone

Hedge funds bring active speculative capital to the currency market. I explain global-macro funds, quant funds and the famous Soros trade of 1992 against the pound.
Editor's picks5 min read

Tier-1 dealers — who prices the currency market

A dozen-or-so commercial banks quote forex for the entire world. I explain who the tier-1 dealers are, what their edge rests on and what it means for you.
  1. 01Central banks in the forex market — their role
  2. 02Hedge funds in the currency market — the capital that sets the tone
  3. 03Tier-1 dealers — who prices the currency market
  4. 04Retail versus institutional traders — an honest comparison
  5. 05Interbank market — the top tier of the forex market
  6. 06Algorithmic trading firms — the forex market makers
  7. 07Corporations in the currency market — who hedges the rate
  8. 08Prime brokerage — the bank that opens a fund to the market
  9. 09Are there dark pools in forex? How hidden liquidity works