Types of Forex Traders

Foreign Investments Companies Foreign investment companies are basically the investment organizations which are carrying out foreign currency trading operations in the market. These companies show great requirements for a particular foreign currency. For example, if we talk about foreign investment companies like importers of certain products, that these firms would like to buy in bulk, a particular foreign currency for trading and business purposes. Same is the case with other investment firms like exporters of certain products, who would like to sell a particular type of currency more. These firms do not have a direct admission to Forex market. They operate their conversion and depository processes via commercial banks only. Commercial Firms Commercial Firms make for a sizable part of the Forex trading market and a significant part of the market gets its way from the economic activities of such firms which are looking for foreign currency to pay for all the goods and services they employ. As compared to the big financial companies and huge banks, these commercial firms often trade a rather small amount of money, and their trading mostly has a slight temporary effect on the overall market rates. Trade flows, in terms of internationally big companies, becomes a central issue in the lasting direction of a currency's Forex rate. Some of these global giants are also capable of having an impulsive impact on the market rates, especially when very large positions are filled, of which, not many retail or individual traders are aware.