Forex or FX is short for "Foreign Exchange" and is called in German currency. Consequently, the FX market or the forex market is the market where the foreign currencies are exchanged.

So, as adopted, see that the American economy was on the ground long enough and you believe that there is currently sufficient evidence to suggest that the U.S. faces an economic upswing. Since you want mitmischen perhaps, best in the real estate market, because promises a good return. So you want to buy something. Thus in the U.S. but you can go on a shopping trip, you need dollars. Consequently, you exchange euros for dollars. The result is: The dollar goes up, the euro down, at least in theory. And if

many do now, we are seeing a trend. As trends change, but as soon as reviews, change the currency, sometimes every second. And these changes benefit many people, including private traders happy in their favor from. They are speculating on a rise or fall of a currency and milking money if they were right.

As you can see the foreign exchange or forex market, a market like any other meet for the various buyers and sellers to trade with each other. It is the largest financial market in the world and offers a high level of liquidity traders, a transparent price, low trading costs and a predictable volatility (fluctuation range for a given period).

The foreign exchange trading was and still is the domain of banks, that's why they call him also the interbank market. But since the mid-nineties, some brokers also offer private dealers easy access to this fascinating market. If you want to mitmischen in this market, one has to know who the other and why they disport themselves in this market. For only by knowing the interests and objectives of other market participants, the responses to messages and to estimate the fluctuations in the foreign exchange market and understand.

Company

Companies that make a large part of their sales through the import and export trade are affected by exchange rate fluctuations. There are exceptions, but most people want absolutely no risk or speculation in a foreign currency. You want to replace only the foreign currency into their domestic currency. Happen when and under what conditions that often has a major impact on their balance sheet. Your transactions are therefore fundamental and long-term motivation is founded. Commercial banks Since the companies have no direct access to foreign currencies and foreign exchange trading, they have over banks. The banks are many and exchange at all interested. They play the central role. They are in a loose network, interconnected and represent the so-called interbank market; whereas your main interests are: - They represent a market and are market makers - They provide jobs - They conduct proprietary trading.

Market Maker

A market maker is buying and selling rate at which it is prepared to act and act at their own risk and account. Banks and brokers are market makers. So it is incumbent upon them by quoting the exchange rates to provide liquidity. Your profit is the difference between the quotes made by them in the interbank market and get them to pass on to their customers. Market makers are especially the global players such as JP Morgan Chase, Barclays, Citibank, Union Bank of Switzerland (UBS), Royal Bank of Scotland (RBS), HSBC, Goldman Sachs, Bank of America, German banks and others. They like to make a profit from short positions and arbitrage transactions, that is, in transactions in which they can exploit the price differences.

Proprietary Trader / Proptrader

The Proptrader is comparable to a private dealer and wants to earn his highest possible return on capital employed, a great profit. Its operations are short term, they sometimes only take minutes, sometimes days. In contrast to the private traders, however, he is not risking his own capital, but that of the bank, where he is employed. The pay him a salary and a share of the profits. If he lost, it completely takes over the bank. Broker

Brokers are intermediaries for all those who have no direct access to the interbank market. Your customers can include banks. The brokers generate revenues through a broker's fee, they did not speculate on their own account. The large electronic brokers are Reuters Dealing and EBS.

The brokers that offer to trade in the private sector, a different caliber. They are no intermediaries such as the above-mentioned professional, but they are the direct trading or opponents of their private clients. They finance their living from the spread, the trader must pay the private forever.

Central Banks

The central banks or central banks behave sometimes as top dogs on the Forex trading floor. Above all, the U.S. Federal Reserve (Fed), the European Central Bank (ECB) and Bank of Japan (BoJ). Despite all the reassurances, the central bank to influence short-term very well able to exchange rates. And if it benefits the domestic economy, where first of all the alarm bells ringing. The International Monetary Fund (IMF) prohibits the "manipulation" of exchange rates, but where the boundary between a justified intervention activity and a manipulation?

According to the IMF agreement would be even intervened in the foreign exchange market if the deviation of the market price to intrinsic value of the currency is too large. It says the economy, politics and mood of the country to keep an eye on. In the long term market trends, however, can be suppressed by a policy of intervention, not because going support purchases or sales have views to the preserves.

Corporations

Insurance, investment and trust companies will exchange the foreign exchange market market currencies. Hedge funds are happy to speculate on the exchange rate. The best known is probably the choice Americans speculator George Soros, who on 16 September 1992 to the devaluation of the pound, while speculation was one billion U.S. dollars.

Individuals

Individuals have the forex market not have a long tradition. What was once the big banks or reserved for the rich, only comes slowly in the minds of individuals. Because without them, share Internet access, it was simply not possible in the foreign exchange trading. Since the advent of electronic trading platforms such as EBS, brokers now offer their services and let anyone who wants to participate in the Great Game.