Forex Introduction : The Players

There are four primary groups that trade the Forex market:

First, the Novice or Retail Traders – these are part-time, non-professional traders who are speculating on market direction – not hedging, that is, not using these markets as part of other international business dealings.

Second, the Dealers – these are the market makers, setting prices and putting together trades.

The third group, the Institutional Traders, work in banks or government agencies. They trade huge amounts of money and the size of their trades moves the markets. These traders are often trading to settle accounts for import/export and other actual international business dealings.

Last, are the Advanced Traders. This group comprises professional full-time traders, people from all across the world, sitting in smaller investment firms, offices, or even their homes. Again, these traders are generally speculating on market direction – not hedging.