Parts of the Money Market in Forex Trade

Forex consist of two parts, the market makers and the market users. Who are market makers? In simple terms the market makers are the controlling banks and financial organizations that control the currency rate in the world market and economy. In fact they are big enough to have the controlling powers, who make the buying or the selling decision of the currencies. They trade for millions and millions of Dollars and control the standing in the market in general.  It is known, that the greatest market makers are international banks like the Deutsche bank, Barclays, Citi, Chase Manhattan, Union Bank of Switzerland amongst others. To be market makers it is important to ascertain their size of operations in the market as well as their size.

Market makers differ for each country. For the Asian currencies in general, the known market makers are the. For trading in e USD as a trading instrument, the market-makers are the Credit Suisse Bank and the Union Bank of Switzerland. They are known for their size and percentage of market operations. For the Ruble, it is the International Moscow Bank and the Onexim Bank. It is important for the financial organization to be able to quote rates of currencies versus the currency of the money maker’s currency. In short market makers control the currency exchange rate by trade dealing with other counterparts as well as other banks. The market makers quote currency rates to the small banks and financial institutions, therefore leading to the concept of market users.

Market-users are relatively small financial organizations, banks, individual brokers or companies, who in turn follow the quoted rates by the market makers and use it to their benefit. These users either can choose to accept the market rate or not and proceed to trading.